PASA publishes guidance on data readiness for buy-in and buyout

The Pensions Administration Standards Association has published guidance on data readiness for buy-in and buyout. 

The guidance aims to support trustees and administrators in preparing for an insurer transaction and it highlights key issues including the consequences of holding incomplete and poor-quality data which can lead to higher insurer costs. It also notes the key data-items which should be held for all members and the actions trustees can take in advance of a buy-in/buyout to demonstrate good governance. It lists some “quick-win” tasks such as: periodically reviewing member information (for example, address and postcode checking); having full member forenames rather than just initials; “marital screening” to confirm ongoing relationships; and “mortality screening” for deferred members.

Being data-ready should enable trustees to obtain the best price possible for their insurer transaction, as they approach the deal with high-quality data already in place. Regular data cleansing also ensures the scheme maintains a high standard of data quality for the purposes of ongoing administration and reporting to the Regulator.