By Matt Ritchie
The Pensions Regulator has taken another step in its education drive on administration, publishing a guide setting out “5 simple steps” to help trustees of smaller schemes understand their responsibilities and improve administration standards.
Announcing the guide’s publication, the Regulator said administration standards tend to be lower in smaller schemes, with some trustees “not engaged” with their duties or the work of their scheme administration providers.
Executive director for DC, governance and administration at TPR June Mulroy said poor administration can have a real impact on scheme members.
“Inaccurate records might lead to people getting the wrong level of pension.
“The cost to the scheme of correcting data issues, or dealing with complaints, can also eat away at members’ retirement pots,” Mulroy said.
TPR has also published a survey assessing how schemes are progressing in dealing with data issues, and a statement summarising the key messages to trustees of its awareness drive on scheme administration and where they can find more information.
While 90% of administration providers had plans to measure common data, just 47% of the administration providers had got as far as agreeing an action plan with the trustees to check that the data held were accurate.
A total of 95% of administration providers were aware of the Regulator’s record-keeping guidance. But, of those that were aware, only 39% had read the guidance in detail and taken action. A total of 83% of administration providers attended trustee meetings at least once a year to answer questions about record-keeping, though 11% said they had never done so.
Access the guide for trustees here, and the survey report here.