As part of its drive to encourage trustees to improve scheme administration, TPR is intending to publish more guidance to complement its Record Keeping guidance of June 2010. Guidance on the following issues have now been published: what trustees can and cannot expect of their auditors in relation to the accuracy of member data and information and documents that trustees should ask of their administrators to improve administration.
Time and cost savings for schemes
According to research cited by the Regulator, if member records are validated, schemes can save themselves up to £20,000 per pensioner. Review of member data can be particularly important for schemes about to wind-up. Contracted-out occupational pension schemes winding-up can save a lot of time when agreeing GMP data with the National Insurance Contributions Office if they have reviewed their member data beforehand. We have advised a number of schemes about the quality of their member data and scheme administration, especially in light of the Regulator's drive for improvement in this area. Please speak to your usual contact in the pensions team for further information.