“It is a capital mistake to theorise before one has data.” This insightful observation may have been stated by the fictional Sherlock Holmes but holds real and profound relevance in the pension scheme sector today.
Accurate data and well-ordered deeds are foundational to any pension scheme, particularly during critical phases like buy-ins and buyouts.
While a company's decision to transfer its pension liabilities to an insurer can be strategically beneficial, it also carries risks if the quality of the scheme's member data, deeds and other scheme documentation is compromised.
Pension schemes thrive on precision. The repercussions of inaccurate member data and error-strewn deeds - inconsistencies or gaps, for instance - can cause insurers to become wary. These issues often elevate transaction costs, introduce delays and increase the number of exemptions compromising the trust between the pension scheme and the insurer.
In the two articles below, Pendragon managing director Raf Shergold and The Tracing Group managing director Danielle Higgins look at solutions to help schemes with the handling of their deeds and member data.