DB accuracy in focus in new PASA guidance
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The Pensions Administration Standards Association has published guidance on accuracy for defined benefits to build on its work around data quality.
Paying the correct benefits is one of the foremost aims of every pension fund, but PASA says the complexity of many trust deeds and rules, together with legislative requirements and the variation of scheme design over the decades mean doing so “isn’t always a straightforward task”.
Kristy Cotton, who chairs PASA’s data working group, said the new guidance produced in partnership with consultancy Isio has been prepared to support schemes in understanding key areas for benefit accuracy, which the report identified as:
- benefit specification;
- data specification;
- benefit audit;
- automation (scalable based on scheme membership); and
- independent assurance.
PASA chair Kim Gubler said: “The investment to get benefits right is time and money well spent, not only for the outcome and experience for members, but in comparison to the significant costs that arise when things go wrong.”
What steps does your administrator take to ensure benefit accuracy?
