Pensions

EDM Group has been helping Pension professionals improve security of and access to pension data for 20 years.
The pensions market is ever evolving. In recent years there has been a seemingly endless flow of new regulations making fast and efficient access to accurate data essential if pension administrators are to provide the best possible service to scheme members.

How are Pension schemes affected by regulation challenges?

GDPR

Any organisation that controls or processes personal data is now bound by more rigorous and far reaching legal requirements of the updated Data Protection Act.
If Trustees and their scheme administrators, whether in-house or outsourced fail to comply, they could be fined up to €20m, or four per cent of annual global turnover, whichever is higher.

The Pensions Regulator – Record Keeping

Pension Schemes and Administrators typically have access to and share huge amounts of member data, including ‘common data’ such as national insurance numbers, names, addresses and other personally identifiable information, and more ‘scheme specific’ (conditional) data such as employment history, salary and payment details. It is critical therefore that they are aware of the data which they hold and that they manage this data effectively to ensure compliance with new regulations.

Challenges

Scheme transfer

While scheme information may have been correct at the time your members joined, corporate transactions, changes in benefit design and fluctuations in membership make it easy to see how the fabric of your scheme can quickly unravel. From our research we have found that scheme transfer projects can result in approximately 10% of data loss.

De-risking

Schemes could miss opportunities to de-risk as they will pay a higher premium of typically 10% more than necessary for insured solutions due to poor scheme data and if data is held in historic file formats including microfiche, which is slow and difficult to review, making it problematic for the member benefit payable to be accurately calculated.

  • It’s a growing market; 59% of pension professionals expect the de-risking market to grow significantly
  • There is a genuine concern; 45% believe that the chances of securing a de-risk solution are ‘poor’ or ‘very poor’ if DB schemes have poor data.
  • The data challenge; 51% believe that only half of DB data is in a digital format and 17% believe that the quality of information held by DB schemes is ‘poor’ or ‘very poor’.
  • A significant cost saving could be made; 79% of pension professionals believe that DB schemes would pay less to de-risk if they had better quality information.

Source: EDM Group survey based on 163 Pension Professionals.

Information held in microfiche and paper archives

There are many problems associated with analogue records and the case for converting these records is compelling;

  • Analogue records are at risk of partial loss through misfiling, or total loss through disaster
  • The data contained within these records is difficult to access and analyse
  • This important data is often overlooked or missed, which can be costly
  • Analogue records are difficult to control and distribute with colleagues or third parties
  • They cannot be integrated with other systems and software applications
  • Admin tasks are more laborious and often more expensive
  • Auditing and data reconciliation is almost impossible without significant manual effort
  • The ability to de-risk in a favourable market is hindered

How We Help

Good quality data has always been central to the successful management of pension schemes.
From in-house and third party administration to independent trustees and de-risk solution providers, our information management solutions have been proven to reduce operating costs and increase efficiency. Our ability to Scan historic and current records (regardless of their format), intelligently classify key document types and extract specific data, enables our customers to quickly and efficiently access business critical information. Efficiency gains and cost reductions are realised when users can quickly and easily locate content that helps to complete a task, solve a problem or advance a business process that would have otherwise exhausted valuable employee resources.

Benefits

70%
70% time reduction to locate member’s data

10m
10 million records scanned

20
20 years’ experience

£’s
£’s in real estate savings