Why keeping your pension scheme data in top shape is more essential than ever.
When the pension scheme is running well it is easy to underestimate the importance of good quality member data for every aspect of running a scheme, but behind-the-scenes fixes can often mask significant data issues.
To ensure that the time and effort spent on data management is proportionate, data integrity should be considered in the context of the scheme’s wider strategy, rather than just to fulfil arbitrary targets. With that in mind, there are three fundamental areas to reflect on.
With so much focus on investment strategy, funding and other strategic activity, it is easy to forget how important it is to get the business as usual activity running smoothly. Good quality member data is key to this for a number of reasons:
Enabling “journey planning”
With the vast majority of schemes now closed to accrual and looking towards a long-term goal of de-risking and ultimately discharging liabilities, data quality becomes crucial to fulfilling that aim. There are plenty of cautionary tales of schemes that have underestimated the importance of making sure that data cleansing work is carried out in advance of carrying out de-risking activity.
This is an area which is only now starting to become a board level issue for corporate entities, but is something that trustees must begin to consider. With an increasing number of high profile cybercrimes, online security is becoming a significant issue for individuals, and trustees need to understand how they can actively protect their members’ data.
To read what steps trustees should be taking to address data integrity read the full article.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.