It is no myth that good record keeping is key to a well run pension scheme. All of us who are part of this industry know that it is crucial that accurate data is maintained. Trustees are responsible for administering their pension scheme properly – even if they delegate the day to day running and management of the scheme – they cannot abdicate from their responsibilities. So why is it so difficult to improve standards of record keeping across the industry? Trustees face a huge dichotomy on how to tackle poor data issues or even to assess how good their pension scheme data actually is; how would they go about plugging any gaps?
The Pensions Regulator states that they aim to work with trustees to improve the standards of record keeping across the industry and even provides guidance on how to put in place good governance and practices. There is a lot of talk amongst trustees about addressing data problems but there is little appetite in actually biting the bullet and getting data issues sorted. Is cost the prohibiter?
At Spence & Partners we have invested in building the tools and expertise to enable us to work with and help pension scheme trustees address their data issues – but such exercises can be costly and scheme trustees are struggling to understand the value; as they say “you can lead a horse to water!”