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Data Solutions

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 and tools for consolidating, reconstructing and reconciling scheme data and benefits. We support pension schemes defining a data strategy to contend with on-going regulatory requirements, resulting member redress and aligned towards their end game, be it through voluntary wind-up, buy-out and buy in or through Pensions Protection Fund (PPF) entry or natural run-off.

The teams have managed over 100 wind-ups, overseeing the data analysis, reconciliation and rectification. The teams have completed full data integrity exercises on over 1,500 schemes with over 30,000 members resulting in outcomes for every member including the payment of outstanding pension and death benefits for over 20% of the population. This also includes the handling of one of the largest full bulk member benefit reconstruction and recalculations 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, full reconstruction of benefits and execution including member communications.

Equiniti offers an efficient and cost-effective service to pension scheme Trustees. 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 pension 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, the sponsors and managers of all contracted-out defined benefit schemes have a limited time frame to address not only the reconciliation of benefits with the Government’s own records but also the rectification of any issues arising and the equalisation of benefits between male & female members airing from the ‘Barber’ legislation.

Our Data Solutions teams have developed a sophisticated in-house analysis, reconstruction 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 have worked 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

Schemes require assurance around the quality of their data to minimum standards of reporting in line with the Pension Regulator (tPR) data standards.  Our Data Solutions teams, software and toolsets can provide on-going data analysis and 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 teams deliver Actuary-led de-risking solutions, at an administration price. This includes support for buy-in and buy-out transactions.  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:

 

GET IN TOUCH

To find out more about how Equiniti can help your organisation, get in touch with us today.

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