New guidance containing a practical framework for assessing, calculating and maintaining Contingent Spouse Pension (CPS) values has been published by the Pensions Administration Standards Association (PASA).

The guidance focused on the role data quality plays in CPS construction in ensuring accurate and reliable outcomes.

Contingent Spouse Pension (CSP) Construction – Managing Data Quality explained why good data matters, outlined the governance expected, and set out several calculation methods – from detailed actuarial models to simpler estimates – so schemes can choose the approach that best fits their data, purpose and complexity.

High-quality data “sits at the heart” of effective pension administration, commented PASA chair, David Fairs.

“This guidance supports schemes in making informed, proportionate decisions on how contingent spouse benefits are calculated and maintained.

"By improving data quality and governance, schemes can enhance operational efficiency, strengthen readiness for transactions and deliver better outcomes for members and their dependants," he said.

"CPS is a benefit paid to a surviving spouse and can be complex, especially where historical data is incomplete or inconsistent", added PASA Data Working Group chair, Kristy Cotton.

“This guidance brings together practical experience from across the industry to help schemes navigate those challenges.

"It encourages a structured, transparent approach, enabling trustees and administrators to understand the trade-offs involved and implement solutions suited to their data and objectives."

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