The Pensions Administration Standards Association (PASA) has launched guidance on data scoring, aimed at improving the consistency and quality of data within the pension industry.

The guidance is focused on scheme-specific data items and identified key areas for trustees to prioritise during data testing.

It was designed to support trustees and providers, promote an improved and consistent data scoring approach across the industry, achieve a comparable and understandable data scoring standard, and ultimately drive improved data quality.

In addition to this, it also seeks to ensure trustees can evidence data quality improvements, maintain transparency with rectification plans, and avoid delays in data testing, even during ongoing rectification projects, to uphold accountability.

The guidance includes data scoring requirements from The Pensions Regulator (TPR), data accuracy challenges, minimum requirements for schemes, and administrator and trustee guidance in the report.

PASA Data Working Group chair, Kristy Cotton, said that regular testing and scoring of data was “vital” and must remain a “top priority” for trustees.

“While some data quality can be maintained, other items don’t stay still and member data should be tested comprehensively at least once a year, with tests tailored to the unique requirements of each scheme,” Cotton explained.

“Not testing important data for the scheme means data risks may not be fully understood.

“Equally, testing irrelevant or unnecessary data risks could misrepresent data quality and divert attention from resolving genuine issues. Inappropriate data testing could create an inflated perception of data quality.”

Cotton also said that while low data scores are not “ideal”, they provide an “honest reflection of quality”.

She emphasised that trustees must understand their data, act on identified issues, and demonstrate improvement as effective data scoring drives efficiency, automation, consistency, and an enhanced member experience.

Adding to this, TPR policy delivery lead, You Yu, said: “As the regulator, we welcome this guidance which provides practical suggestions on how schemes should approach when scoring their member data.

“Good quality member data is essential for a well-run pension scheme, not only in ensuring that the right benefit is paid to the right member at the right time but to ensure schemes can run smoothly and cost-effectively and help trustees to make informed decisions and comply with regulatory requirements.

“Schemes should measure and improve their data to ensure they are complete and accurate, these expectations have now been embedded in our new General Code, which has already been enforced.

“This means that where a scheme is not meeting our expectations that are set out in the General Code, we can now take action where necessary.”

However, she urged schemes to review their data scoring approach to ensure they meet TPR’s expectations.

Yu also encouraged schemes to “adapt a good practice that is highlighted in PASA guidance, which where necessary, to foster consistent approach among the industry which ultimately will improve the quality of data”.

TPR head of policy, Fiona Frobisher, said: “We encourage scheme administrators and trustees to review their existing scoring approach to ensure they meet minimum requirements, and adapt the good practices highlighted in the guidance to score member data in a consistent way.”

Yu also warned of the effects of data quality on other areas of focus for schemes, including pension dashboards.

She suggested data quality was “critical” for the success of pension dashboards and that “time was running out for schemes to get data sorted for dashboards”.

“Without good data, savers may not be able to find all their schemes or get an accurate
picture of their savings to help them plan for their retirement,” Yu said.

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