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ABI welcomes moves to improve pension scheme data quality

The ABI has welcomed The Pensions Regulator's consultation paper on improving the quality of record keeping within occupational pension schemes.  The paper looks at how current Best Practice guidance, issued by The Pensions Regulator in January 2009, has worked and what further measures could be introduced.


Earlier research from The Pensions Regulator showed that 53% of pension schemes were missing more than one piece of basic data.  Such information can make a major difference to schemes members and trustees, especially those looking at insured or capital market solutions to help them manage the risks of running a pension scheme.  One leading buy-out provider indicated in the consultation paper that poor data can result in a 5% difference in value of these multi-million pound deals.


The consultation, which was released last week, closes for comments on 27 April 2010.   Peter Vipond, Director of Financial Regulation and Taxation at the ABI, said:


"These changes will greatly improve the quality of data provided and should mean a more efficient process, benefitting retirees as well as pension funds. With many occupational pension schemes now looking to insurance solutions and the capital markets to help them manage their risks, accurate data is vital.


"There is always a danger of over-regulation and imposing administration over-burden, which needs careful handling.  However, done right, these proposals will ultimately have a very positive effect for the pensions market."


Latest ABI figures show that Bulk Insured Pension companies (commonly known as ‘buy-out firms) hold reported funds under management of £22 billion securing the defined benefit occupational pensions of over half a million people.  This compares to the £800 billion being managed by the trustees of defined benefit occupational pension schemes, who will be affected by these proposals.

Last updated 01/07/2016