JLT/PMI Survey shows survey needed to comply with TPR guidance

Joint JLT Benefit Solutions/PMI Survey shows lot of work to be done to comply with TPR guidance on record keeping

 

22nd September 2010, London:  JLT Benefit Solutions (JLT), one of the four largest employee benefits consultancies in the UK, has released the results of a survey examining the link between record keeping and the quality of pension scheme data.

The joint research initiative with the Pensions Management Institute (PMI) will investigate the changing relationship between pension scheme administration and effective scheme governance over the next 12 months, a topic of major importance for all UK pension schemes as they look to control risk and operate in a rapidly changing pensions environment.

The survey asked approximately 350 respondents to evaluate their compliance with the final guidance on pension scheme member record keeping, as issued by the Pensions Regulator (TPR) in June 2010.

The new guidance sets out challenging targets for standards of data and a deadline by which it is expected that schemes will have addressed any problems. The guidance also strongly encourages Trustees to report to their membership on the accuracy of pension scheme data.

Key findings of the JLT / PMI survey:

• Almost 45% of schemes have failed to carry out a review of their member data in the last two years
• For those that have carried out such a review, an alarming number of those reviews were related to concerns about data
• Nearly one-third of schemes that have carried out a review in the last two years received a rating of 'average' or worse; only 20% were rated ‘very good'
• Nearly 60% of respondents believe that data quality issues have resulted in increased costs for their scheme
• In light of the Regulator's final guidance, 75% of schemes will carry out a data review in the next 12 months; over 80% will carry out regular review in future
• In terms of respondents' view on ultimate responsibility for record keeping, results were evenly split between trustees and the pension administrator provider

Commenting on the findings, Andrew Marson, Head of Trustee Governance at JLT Benefit Solutions, said: "Despite clarity from the Regulator of the importance of strong governance relating to pension scheme data, these findings show that a significant proportion of schemes are way behind the curve.

"Alarmingly, there is clearly much work still to be done for many schemes if they are ever to meet these standards."

 

-- ENDS --

 

Enquiries:

Group Corporate Communications

Isabella Young

+44 (0)20 7558 3387

EMAIL

 

JLT Benefit Solutions

Simon Hazeldine

+44 (0)1727 775 102

EMAIL

 

Editor's Notes:

About JLT Benefit Solutions Limited

JLT Benefit Solutions Limited (JLT) is one of the UK's leading employee benefit providers offering a wide range of benefit and pension services, including administration, actuarial and pension consultancy, investment, wealth management, Self Invested Personal Pensions (SIPPs), Small Self Administered Schemes (SSASs) flexible benefits, healthcare, benefit communication and financial education.

Authorised and regulated by the Financial Services Authority, JLT employs over 1,200 professionals in the UK with revenues of some £90.5m in 2009. The recent acquisitions of HSBC Actuarial and Consultants Limited and iimia Wealth Management have supported JLT's continued expansion to become one of the four largest employee benefits consultancies in the UK. This year JLT was awarded Pension Scheme Administrator of the Year at the 2010 European Pensions Awards.

Other pensions and employee benefits companies within the JLT group of companies include: Profund Solutions Limited, Independent Trustee Services Limited and Pension Capital Strategies Limited.

JLT Benefit Solutions Ltd is part of Jardine Lloyd Thompson Group plc.

http://www.jltgroup.com/employee-benefits/

 

Jardine Lloyd Thompson Group plc

Jardine Lloyd Thompson Group plc (JLT) is an international group of Risk Specialists and Employee Benefits Consultants and one of the largest companies of its type in the world.  JLT offers a distinctive choice to clients and partners through our combination of independence, scale and specialism.

Jardine Lloyd Thompson Group plc is quoted on the London Stock Exchange and employs 6,200 people worldwide and through JLT Network^TM provides services in more than 120 countries.

http://www.jltgroup.com/