Pensions

Bad data leads to unclaimed assets and increased costs for pensions managers

Pensions

We all know there is a large unclaimed asset problem and significant challenges ahead for pensions managers and trustees.

The Pensions Regulator highlighted common data standards in 2012, and BSI standards were issued recently around tracing goneaways. And we now have the FCA findings in the Closed Life book review, heavily endorsing the need to deal with goneaways and dormant assets.

The goneaway issue is important for many good reasons:

  1. Accurate data is integral to every aspect of benefit calculations and payments
  2. Data quality has a direct correlation to customer satisfaction. So if your data is incorrect, you can expect more complaints from scheme members, all of which take time and money to resolve
  3. In the absence of accurate data, your deficit calculations and ongoing funding plans will be incorrect
  4. GMP reconciliations, to be completed by 2018, will be examining data going back to 1978. If your reconciliation activity leads to over or under payments, they must be communicated immediately
  5. More trustees today are considering liability management initiatives such as buyouts or buy ins. Accurate scheme data is important both to the business looking to enact a buyout and that looking to take the buyout into their business. Either side of the deal, mortality and risk around unclaimed assets is a key premium negotiator
  6. More and more regulatory pressure is being applied and it will become increasingly demanding with UK plc placing growing emphasis on treating customers fairly
  7. Our data solutions are designed to deliver improvements in member engagement, reduce scheme funding costs, cut administration – and satisfy the regulator by helping you ensure data accuracy.

If you are not sure how accurate your data is, we will run a free data health check for you. This will tell you how your data could be improved so you can make an informed decision on any next steps. Contact us for more information.

Free data health check