Administration a significant issue

The third-party administration firm said the industry needed to acknowledge administration as a significant issue that could no longer be ignored.

Xafinity Paymaster specialist and public sector director Lesley Carline said there was limited information on effective record keeping available for trustees – even though there were numerous toolkits and guidance on governance and other key responsibilities.

Her comments come after The Pensions Regulator released its record keeping guidance to the industry for consultation last month PP, July 31).

Carline said: "The consultation has highlighted that if we do not do it now it will cost schemes’ later. The inaccuracy of data could create a potential minefield not only for wind-ups and buyouts but when it comes to members retiring.

"It could cost the scheme a lot of money and ultimately be detrimental to members. It is the trustees’ duty to ensure the administration of the scheme is accurate, that the data is accurate. You’re not going to get the right answer without good administration. "

Carline said the regulator’s guidance was "a good starting point" to an essential issue, which had emphasised the importance of good record keeping for all schemes but especially for large mature schemes.

"It’s refreshing to see such guidance, guidance that in reality is just common sense. There is a lack of qualifications amongst administrators. There needs to be more training on effective record keeping and its systems."

The TPR’s consultation will close on October 15.