Pensions Regulator investigates trustee record-keepingPrint publication
Under the Pensions Regulator’s (tPR) 2010 guidance, it identified two categories of data:
- Common data – this includes members’ names, national insurance numbers and dates of birth. Since June 2010, tPR expects schemes to record data with 100% accuracy. Common data acquired before June 2010 should be 95% accurate.
- Conditional data – this is data in respect of how benefits are calculated. Conditional data includes pension sharing orders, AVC details and any members’ periods of absence.
TPR has reviewed a sample of 237 DB, DC and hybrid schemes of different sizes. The purpose of the review was to assess whether pension schemes were meeting the above targets for common data, and if not, the reasons for them.
The findings of the review demonstrated that overall out of the 237 schemes reviewed, there was a competent degree of good practice. However, it did bring to light cause for some concerns. For example, of the 237 schemes reviewed only 83% provided tPR with common data scores. Of this 83% only 75% had scores of 95% or above. It was identified that one of the main reasons for the lower scores included a failure to maintain members’ addresses and personal details. Other reasons included: a lack of focus on the accuracy of the data and lack of pro-activeness by the trustees to collect the data until prompted by tPR.
As a result of this review, tPR has implemented seven investigations which could lead to enforcement action being taken by tPR.