New data guide aims to help trustees prepare for buyout
Pardon the Interruption
This article is just an example of the content available to mallowstreet members.
On average over 150 pieces of new content are published from across the industry per month on mallowstreet. Members get access to the latest developments, industry views and a range of in-depth research.
All the content on mallowstreet is accredited for CPD by the PMI and is available to trustees for free.
The Pensions Administration Standards Association has released new guidance on data readiness for buy-ins and buyouts.
Data cleansing is considered paramount before approaching the risk transfer market if pension fund trustees want to make sure they are considered by insurance companies and get good value.
PASA said the new guidance aims to support trustees and administrators in preparing for an insurer transaction and covers:
- the consequences of holding incomplete and poor-quality data;
- a list of the data items most commonly requested by insurers;
- the actions trustees can take in advance of buy-in/out to demonstrate good governance; and
- quick wins, such as complete and accurate common data
The association’s chair, Kim Gubler, stressed that data underpins every aspect of the management and delivery of pension benefits.
“It’s crucial trustees and pension managers always maintain the highest standards of data quality. This principle applies not only for the purposes of ongoing administration and reporting to the Pensions Regulator, [but] it also enables smooth, efficient and preferential pricing terms when pursuing derisking projects with insurers, such as buy-ins and buyouts,” Gubler said.
Kristy Cotton, who chairs the PASA data working group, added that an overall data strategy which encompasses transaction preparation alongside guaranteed minimum pension equalisation and pensions dashboards was “the ideal approach”.
Do administrators have capacity to prepare schemes for risk transactions?
