Data solutions for a complex pension environment
Equiniti specialises in helping pension scheme Trustees and sponsors manage the financial and reputational impact of data and calculation risk. The multi-skilled team has extensive collective experience of supporting pension schemes negotiate their end game, be it through voluntary wind-up, buy-out and buy in or through Pensions Protection Fund (PPF) entry.
The team has managed over 100 wind-ups, overseeing the data analysis, reconciliation and rectification. This includes the handling of one of the largest full bulk member benefit re-calculations in UK pension history.
Pension Scheme Discontinuance
Many defined benefit pension schemes are discontinuing. This may be as a result of a voluntary wind-up or through an employer insolvency event which can lead to transfer into the PPF.
The challenges in winding-up schemes should not be underestimated. The complex inter-dependency of tasks can lead to overrun in time and costs. Our approach to wind-up is designed to give maximum confidence to trustees through diligent planning and execution.
Equiniti offers an efficient and cost-effective service to pension scheme Trustees, either as part of the PPF’s Specialist Administration Panel or through direct appointment. Our approach and process management allows Trustees to focus on their key areas of responsibility, secure in the knowledge that they have delegated administration duties to a specialist.
Contracting-out Reconciliation Services
When a scheme is contracted out of the second part of the State Earnings Related Pension Scheme it has to provide certain minimum levels of pensions benefits. This minimum level of benefits is known as the Guaranteed Minimum Pension (GMP). GMP reconciliation is the process used to ensure the scheme records agree with those of the National Insurance Contribution Office (part of HMRC). This enables Trustees to consider their data as clean and entirely reliable.
With the end of contracting-out looming, the sponsors and managers of all contracted-out defined benefit schemes have a limited time frame to register with HMRC’s Scheme Reconciliation Service. With so many schemes to reconcile (including the large Public Sector schemes) and a fixed window in which to carry out the reconciliation, time is at a premium for HMRC, trustees and sponsors.
Our Data Solutions team have developed a sophisticated in-house analysis and recalculation toolset through 15 years of hands-on contracted-out reconciliation experience, designed to give maximum confidence to trustees through diligent planning and execution during the process. We are currently working with schemes covering over 4.5 million members, including schemes Equiniti administers, external schemes and across public and private sectors. Our specialist tools, robust project governance, working relationship with HMRC and scalable skilled Hazell Carr contractor resource set us apart from the rest of the market.
Data Analytics and Reporting
For ongoing schemes that require assurance around the quality of their data, our Data Solutions team can provide data analysis and reporting in line with the Pension Regulator (tPR) data standards as well as more bespoke analysis. Critically, our team can fully support the fixing of data issues at source in addition to the initial analysis and reconciliation.
Equiniti Data Solutions: Pension Scheme De-risking process - in action
Our specialist Data Solutions team delivers Actuary-led de-risking solutions, at an administration price. Our team is specialist in complex scheme design and enables our clients to benefit from our proprietary automated bulk recalculation tool set. Watch our film below: