RSPA working with TPR to help create scheme data standard

RSPA chairman John Reeve told delegates at the Professional Pensions Spring Show that details of the standard would probably be announced in June or July.

It is understood the data standard would not be compulsory to begin with – but any such move could lead to extra work for in-house and outsourced administrators.

Reeve explained: "I am not sure if a lot of the people in the industry will be delighted to hear this news, but we need to be adult about it."

The regulator said the importance of good administration was "vastly undervalued".

TPR head of pensions administration and governance Justin Wray said that poor data had led to thousands of payments being made to members who had died.

He also estimated that poor data could add up to 5pc on the cost of a pension scheme buyout and caused severe problems when winding up schemes.

Wray explained: "The most important thing for a scheme is to keep members satisfied and to keep down complaints. Poor data will make this an impossible task."

The move come after administrators urged the regulator to force schemes to clean up their data.

Northgate HR pensions strategy director Sarah West: "It is a reality that we are facing missing and incomplete data. The fact that we have more complaints is because we are having to search very old records to work out what the benefits structures should be."

West added: "Trustees are often reluctant to do anything about this because of the expense involved. That’s why we want the regulator to look into this issue."

RPMI client services director Andrew Riley suggested that the regulator should introduce a ten year plan to clean up data.