The relationship between pension scheme administration and ...

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6.ConclusionsThere are lots of positive findings in this survey in termsof pension scheme administration and effective schemegovernance.Nevertheless, whilst the majority of pension schemes arewell run, there is always room for improvement.In particular, more could still be done in terms of membercommunication and engagement. Interaction with memberswill become all the more important with the continuedtrend from defined benefit to defined contribution pensionprovision, a trend that will only accelerate after theintroduction of the auto-enrolment reforms from October2012.Speaking of the reforms, it is clear that further ‘automation’of scheme processes is needed if they are to be properlycomplied with.Before then trustees, employers and administrators stillneed to give more thought as to practical measuresrequired to resolve data gaps.With the Pensions Regulator recently launching its2011 education drive(8), highlighting the importance ofadministration in enabling good outcomes from pensionssaving, the subject matter of this report is likely to berelevant for some time.We hope that readers find the survey results and analysis tobe both interesting and useful.8. http://www.thepensionsregulator.gov.uk/press/pn11-05.aspx12
Appendix :Results of 2010 Mini Survey – Record Keeping July 2010• Nearly 45% of schemes have NOT carried out a reviewof their member data in the last two years.• For those that have carried out such a review, therewere a variety of reasons behind the decision to do so(see the graph, below).• Nearly one-third of schemes that have carried outa review in the last two years received a rating of‘average’ or worse; only 20% were rated very good.• Nearly 60% of respondents believe that data qualityissues have resulted in increased costs for theirscheme.What made you decideto carry out that review?(Please tick the relevantbox below)Good governanceConcerns about dataPensions Regulator guidanceDe-risking plansWind-up or PPF assessmentaOther (please specify)7.2%6.0%19.6%21.7%31.3%19.9%• In light of the Regulator’s final guidance, 75% ofschemes will carry out a data review in the next 12months; over 80% will carry out regular review in future.• In terms of respondents’ view on ultimate responsibilityfor record keeping, it is pretty much 50-50 betweentrustees and the pension administrator provider.13
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