What are the effects of poor data?
The result of poor quality, widely dispersed, inconsistent or incomplete member records must be to reduce quality and flexibility and to increase cost as time is spent rectifying data often at a time when speed is of the essence.
There are a number of areas impacted by this:
- Inefficient, delayed or inaccurate provision of member information and difficulty with bulk communication (the root cause of virtually all problems encountered in pensions administration is poor data).
- Slow and expensive actuarial valuations and pension scheme annual reports.
- Seriously delayed implementation of risk reduction initiatives (e.g. Buy-Out, Enhanced Transfer Exercises etc.)
- Inability to take advantage of short term opportunities where comprehensive electronic data is required, such as partial or total buyout.
- Lack of flexibility to respond to major changes such as business sale or merger.