Article | 09/02/2017

Four things to talk to your administrator about

 

Trustees should be asking administrators what processes they have in place for ensuring scheme data is secure. This is particularly important when administrators offshore their work and when schemes are administered from multiple contact or service centres. Data security is a core trustee responsibility even if administration has been outsourced. Trustees should expect their administrator to be constantly improving their data security procedures and for their administrator to be informing them of enhancements, test results and any suspected or actual data breaches. 


 

Trustees need to be confident that their administrators are not just carrying out assurance framework exercises to achieve a goal. That goal could be to win new business or copy their competitors. Whilst these two points are legitimate reasons for gaining an accreditation, Trustees should satisfy themselves that the assurance framework or accreditation in place is there to provide umbrella assurance that the administrator’s day-to-day processes and procedures are up to scratch, and not just there to tick a box. Trustees should also seek assurance that any framework is regularly reviewed and updated, when required.


 

Good data enhances the member experience and contributes to a “right first time” approach. It also enables Trustees and advisers to plan for other events with the confidence that the liabilities of the scheme are accurate.

With de-risking high on the agenda for most schemes, Trustees need to be able to react quickly to market changes. Having confidence that pension scheme data is accurate and up to date is a key factor in being able to take advantage of favourable conditions. Trustees should ask their administrators to draw up a data improvement plan in advance of any de-risking exercise.

Most schemes have undertaken some level of data cleanse based on TPR guidance. However, Trustees should seek regular assurance from their administrators that the level of data quality is being maintained.


 

Trustees need to be confident that all processes their administrator carries out are compliant with current legislation and regulation. Trustees should ask their administrator to confirm how legislative and regulatory change is monitored, how its impact is assessed and how it is communicated both internally and to the Trustee.

 

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