UK third party pensions administration specialist Paymaster has unveiled a new document setting out its procedures on internal controls and risk management in outsourcing pensions administration.
The new document comes in response to the SAS 480 which outlines the requirements on internal controls and risk management in pension schemes.The document is being rolled out to Paymaster’s existing 150-strong pension scheme client base. These include large pension schemes such as Orange, EDS and GlaxoSmithKline.
Sales director for Paymaster Nick Wheeler said: “The document is aimed at the trustees of our client pension schemes and also provides assistance to their auditors. The internal controls relates to our procedures for looking after the schemes assets and making sure the calculations are correct.
“There is a need for this solution. From the trustees point of view, they delegate the work to us but they do not get rid of the responsibility for it. Therefore, they need to be able to make sure that we are doing our job properly and that the risks are controlled. This document is aimed to carry out that task.”
The solution aims to provide pension scheme auditors with the required information on the control procedures while assisting Paymaster in the ongoing review of its own processes and internal controls.
The document contains what the control objectives are and the procedures which support these objectives. There are 10 control objectives detailed in the document such as providing accurate and timely payment of benefits.
Paymaster’s acting managing director Richard Boniface said: “A standardised approach to risk management and internal controls in itself limits the risk.
“We now have a document which is a clear and comprehensive solution to internal controls and risk management in outsourced pensions administration. This type of approach may well become a standard requirement of third party pensions administration in the future.”
Paymaster is a division of corporate and employee services company Hogg Robinson.
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