Record-keeping final guidance published

The Pensions Regulator has today published final guidance on record-keeping, following a twelve-week consultation.

The guidance helps those responsible for record-keeping and administration to put in place good practices for measuring the presence of member data. It also gives advice on assessing the risks of incomplete or inaccurate data.

Following the consultation the regulator has made some changes to the guidance.

The final guidance now uses 'common' and 'conditional' data, as these more closely reflect the differences in scheme types.

Common data is applicable to all schemes, including details such as name, address, date of birth, NI number, dates of start of pensionable service and expected retirement. Conditional data is required to effectively administer a pension scheme. Specific items will vary from scheme to scheme dependent upon scheme design and structure, but could include salary and details of investments.

Justin Wray, head of Pensions Administration and Governance said: “Data quality is essential to good governance. We know there are problems with data and that these cross a broad spectrum of schemes. Member records are a valuable asset, and this good practice guidance has been developed, with input from the pensions industry, as a straightforward tool to help assess risks arising from poor data.”

To view the record-keeping guidance visit: http://www.thepensionsregulator.gov.uk

1. Responses came from a broad cross-section of interested parties with the majority of respondents supporting the regulator's approach and recognising that the standard of record-keeping is an issue that needs to be addressed across the industry.
2. The guidance also stresses the importance of numerical data, which gives information regarding membership records and enable employers and trustees to consider whether the numbers reported are broadly consistent with their knowledge of the scheme.
3. The Pensions Regulator is the regulator of work-based pension schemes in the UK, with objectives to protect members' benefits, promote good administration and reduce the risk of calls on the Pension Protection Fund. Our approach is risk-based focusing on education and enablement, with enforcement where appropriate. We have the ability to:
   • collect information about pension schemes; through scheme returns, under the scheme funding regime and as well as statutory (including whistleblowing) reports;
   • issue notices requiring actions to tackle non-compliance, prohibit trustees who are judged not fit and proper to carry out their duties or appoint independent trustees;
   • direct pension schemes as to how to calculate their liabilities and the contributions required;
   • issue a contribution notice where there is a deliberate attempt to avoid liabilities, or a financial support direction where the employer is a service company or insufficiently resourced.

• Ruth Hallam 01273 627752
• Katherine Long 01273 811859
• Simon Steers 01273 811898
• Out of hours 01273 648496
• http://www.thepensionsregulator.gov.uk/