2/2/2010
By Sophie Baker
Record keeping standards must be improved, says the Pensions Regulator (TPR) in a consultation which states required standards for this practice.
This follows research and engagement with providers and employers in 2009, and framework published last year, which looked at the clarification and assessment of member records, has been built upon in the new consultation, aimed at trustees and those responsible for administering workplace pensions.
The guidance, which set out the common data schemes were required to hold, saw take-up of lower levels than expected. Only 19 per cent of the schemes surveyed had noted whether they had all of the fundamental common data, and 53 per cent of these appeared to be missing more than one item of this data.
TPR will continue to 'educate and enable' schemes in this quest to improve their record keeping performance, but said it is clear that further measures are now necessary. The proposals will see the maintenance of high-quality standards of data as a requirement for all schemes. Targets will also be set for the accuracy of the common data which schemes must hold, and the Regulator proposes to review scheme performance.
"Accurate, complete data on members is a basic building block for almost everything that happens in a pension arrangement, and we will take a much firmer line going forward," commented Bill Galvin, executive director of strategic development at TPR.
"Poor record-keeping can lead to significant additional costs for schemes - with the potential effect of reduced benefits for members."
The requirements, however, will put trustees under more pressure, warns Lane Clark & Peacock (LCP). Chris Green, partner and head of trustee training, said these requirements are more demanding than previous ones. "The impression from the Regulator is that the new training requirements are a straightforward evolution from the originals, but our view is that the Regulator has significantly raised the bar. Trustees are going to need professional advice to ensure they understand the new rules and meet the standards now required of them."
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