The Pensions Administration Standards Association (PASA) has launched a checklist to help trustees with the rectification process for guaranteed minimum pensions (GMP).
Launched at its annual administration conference and update on 13 February, the independent body noted the checklist comes as a survey conducted in partnership with ITM, revealed 43% of trustees did not believe they would complete their GMP reconciliations by the end of 2018. Just 33% of the 75 trustee respondents said they have started or completed the rectification stage.
PASA's GMP working group chairwoman Geraldine Brassett commented: "The number of schemes involved in rectification may still be relatively small, but this will increase as schemes approach the end of their reconciliation exercises."
She added the checklist will help trustees to work with their administrator to navigate the steps in the rectification process, while outlining the questions to be asking at each stage.
Also, that the working group is constantly monitoring issues relating to the reconciliation and rectification process, and will publish further guidance on new developments or specific issues when relevant.
The body said the five key steps that must be followed are: due diligence; agreeing the proposed approach and methodology for the rectification project; data cleanse; rectification calculations; and implementation.
Speaking at PASA's conference, The Pensions Regulator's (TPR) acting executive director of regulatory policy Anthony Raymond said the pensions industry had undergone great changes in recent years and that acknowledged it was challenging for schemes to keep abreast of new issues.
"This was why promoting better managed relationships between trustees and their advisers is an important part of the 21st Century Trusteeship initiative."
Raymond added high-quality administration makes good schemes what they are but, wrongly, many trustees saw administration as ‘chore' rather than a valuable function.
"Good governance equates to better member outcomes and administration is a key part of that. PASA plays an important role in driving up standards and are essential in helping develop dialogue.
"By pooling expertise we can develop the tools needed to help trustees appreciate the value of administration; this will mean they can reap the benefits for their scheme and, more importantly, their members."
Last May, Lloyds Bank launched a joint legal bid with its pension trustees and unions to equalise GMPs in a move that could cost the industry £20bn. The court case will take place in June.
Defined benefit (DB) schemes that provide GMPs must revisit and, where necessary, top-up historic cash equivalent transfer values (CETVs) that have been calculated on an unequal basis, a landmark court judgment said last week.
Technology platform PensionSync has partnered with quantum employment pioneer My Digital to help contractors and employers manage pensions as more workers do temporary work for multiple firms.
Capita Pensions has partnered with data technology solutions firm Intellica to tackle the GMP equalisation challenges facing pension schemes.
The Hewlett Packard Retirement Benefit Plan has reappointed EQ Paymaster as its third-party administrator (TPA) for five years.
Schemes and their administrators have rightly received much praise for ensuring that pensions have continued to be paid in full and on time during an unprecedented period of disruption.