The Pensions Administration Standards Association (Pasa) has published data guidance on benefit accuracy for defined benefit (DB) pension schemes.

Its guidance aims to support schemes in understanding key areas that will support benefit accuracy and focuses on five topics: Benefit speculation, data specification, benefit audit, automation, and independent assurance.

Pasa noted that, due to the complexity of many DB schemes’ trust deeds and rules, alongside legislative requirements and the variation of scheme design over the years, ensuring benefits paid to members are correct “isn’t always a straightforward task”.

Therefore, the guidance has been prepared to help DB pension schemes make sure that their benefits are accurate.

The association concluded that, when assessing scheme data for DB schemes, the benefits payable should be at the forefront of the evaluation to make sure they are accurate and will continue to be accurate going forward.

It pointed to several areas that can help trustees with ensuring that benefits are accurate, including maintaining signed-off benefit and data specifications, having high levels of automation, and following a benefit audit programme.

The investment to get benefits right is “time and money well spent”, Pasa stated, not only for DB scheme members' outcomes and experiences, but also when compared to the “significant” costs arising when things go wrong.

“Trustees have a duty to ensure members receive the pension benefits they are due,” commented Pasa chair, Kim Gubler.

“Pasa has previously issued guidance focused on data quality and we are building on this here by focusing on benefit accuracy.

“When assessing DB scheme data, the benefits payable to a member should be at the forefront of the evaluation to ensure they are currently accurate and remain accurate in the future.

“The investment to get benefits right is time and money well spent, not only for the outcome and experience for members, but in comparison to the significant costs that arise when things go wrong.”

Pasa Data Working Group chair, Kristy Cotton, added: “Given the complexity of DB scheme rules, legislative requirements, and the variation of scheme design over the decades, making sure benefits paid to members are correct isn’t always a straightforward task.

“This guidance has been prepared to support schemes in understanding key areas which will support benefit accuracy.”

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