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.
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.
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.
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.
Source: EDM Group survey based on 163 Pension Professionals.
There are many problems associated with analogue records and the case for converting these records is compelling;
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.