Half of pension schemes fail to review member data

Less than half (45%) of pension schemes have failed to review of their member data for the last two years, according to research by JLT Benefit Solutions and the Pensions Management Institute (PMI).

The research surveyed 350 respondents to evaluate their compliance with the final guidance on pension scheme member record keeping, as issued by The Pensions Regulator (TPR) in June 2010.

The survey also found: nearly one-third of schemes that have carried out a review in the last two years received a rating of average or worse while 20% were rated very good. 

In addition, nearly 60% of respondents believe data quality issues have resulted in increased costs for their scheme, while 75% of schemes will carry out a data review in the next 12 months; and over 80% will carry out regular reviews in future.

Andrew Marson, head of trustee governance at JLT Benefit Solutions, said: “Despite clarity from the regulator of the importance of strong governance relating to pension scheme data, these findings show a significant proportion of schemes are way behind the curve.

“Alarmingly, there is clearly much work still to be done for many schemes if they are ever to meet these standards.”

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