Archives for June 2023

Streamlining Pension Scheme Buyouts: How can a MM. Member Data Audit help?

When it comes to pension schemes and buyouts, having accurate, complete and reliable data is crucial for successful transactions.

According to a recent article published on Professional Pensions, pension scheme buyouts require a clear understanding of the scheme’s data to accurately assess liabilities, calculate buyout costs, and ensure a smooth transition for the scheme’s members.

MM.’s Member Data Audit:

MM. specializes in data assessment, data enrichment, automated member tracing, and appending high quality spouse and beneficiary information. Leveraging MM.’s expertise offers pension schemes a buyout data audit that encompasses the following key areas:

1. Data Assessment:

MM. begins by assessing the current state of a pension scheme’s member data. This involves reviewing the format, quality and completeness of the data using multiple sources. This identifies any gaps or inconsistencies within member records and is crucial to ensure a smooth buyout process.

2. Data Quality:

Following the initial the assessment, MM. Identifies errors, inconsistencies, and duplications which can be improved as part of initial data standardisation and preparation. By improving data quality, pension schemes can minimize the risk of inaccurate calculations and improve the results of the data enrichment process.

3. Data Enrichment:

Once member data is in a consistent format and has been cleaned using reference data sources, MM. will assess data to ensure a member is living as stated, find new addresses when gone-away, append spouse information, check marital status and trace beneficiaries. This is critical information when understanding liabilities as part of a buy-in/buy-out process or valuation.

4. Data Security and Compliance:

MM. prioritizes data security and compliance and are ISO 27001 certified. The Confidentiality, Integrity, and Availability of our clients’ data throughout the audit process is of the utmost importance.

Contact Us today to see how MM. can help streamline your Buy-in/Buyout journey

Pension Scheme Record-Keeping with MM.

Trustees of pension schemes are tasked with complying with the guidance laid out by the Pensions Regulator to ensure accurate and up-to-date records.

MM. offer transformative solutions to streamline record-keeping processes and facilitate compliance with regulatory requirements.

In this article we explore how MM. can assist pension schemes in adhering to the Pension Regulator guidance on Record-Keeping.

Understanding the Pensions Regulator’s Guidance on Record-Keeping

As a pension trustee or someone running a public service scheme you need to keep certain records and data. This enables the administrator to accurately identify scheme members and value their benefits.

There is clear guidance provided on the records you need to keep. This includes ‘member and beneficiary information, including the date each member joined the scheme’ as well as Common Data.

MM. Residence is our automated solution which confirms if the member is living as stated or has moved home and in some cases provide a new address. Address quality and currency is a crucial part of data preparation and consistency for seamless pension dashboard integration.

The  Pension Regulator guidance state that the below information must be valid and maintained in order to become dashboard ready. As well as supporting our clients with address currency, we are also helping append and validate D.O.B which has a significant impact on efficiently matching members to pension pots.

  • NI Number
  • surname and either forename or initials
  • date of birth
  • date pensionable service started, membership/policy start date or first contribution date
  • expected retirement/maturity date (target retirement age)
  • membership status
  • last status event – the date at which the membership status last changed, eg from active to deferred – where appropriate, you should also capture the reason for the change in status (eg retired or opted out)
  • address including postcode

Contact Us today to see how MM. can ensure your Scheme’s data is in compliance with the Pension Regulators guidelines.

The ENDGAME: The Vital Role of Spouse Information during the pension De-Risking Process

As the landscape of UK pension schemes evolves, there is a rising emphasis on endgame planning, where the ultimate destinations of self-sufficiency, consolidation, or buyout hold significant importance.

The PASA Data Working Group have recently released their ‘Data Readiness for Buy-In and Buy and Buyout Guidance’ which details the objective of ‘data-readiness’ being to ‘ensure data is complete, accurate and held in a consistent electronic format ready for proceeding with an insurer transaction.

They go on to detail the consequences of holding incomplete and poor-quality data. This is ‘viewed unfavourably’ within pension scheme management and ‘no different for insurers. Inadequate data equals higher transaction costs, delay and uncertainty’.

PASA go on to describe 4 ‘Quick Wins’ exercises trustees and pension managers can undertake to ensure the scheme is data-ready.

In this article we will explore one of those 4 ‘Quick Wins’ – Marital Screening.

Insurers will need to be fully aware of any future pension payments to be able to fully cost the scheme’s liabilities.
Payments payable to a spouse, civil partner or eligible cohabiting partner after a member’s death ‘is highly valuable information.’

MM. Spouse is our Marital Predictor tool and can empower funds in a number of ways preparing for endgame:

Survivor Benefits:
If the de-risking strategy involves transferring pension obligations to an insurer or another party, it is crucial to accurately determine the marital status of members to ensure the appropriate treatment of survivor benefits. This is particularly relevant if the de-risking involves the purchase of annuities or other forms of insurance contracts that provide ongoing payments to beneficiaries upon the death of the participant. Knowing the marital status helps ensure that the insurer can properly administer survivor benefits and make appropriate payments to the spouse or other designated beneficiaries. 

Pricing and Liability Assessment:
The marital status of members can have implications for the pricing and liability assessment during the de-risking process. Insurers or counterparties offering buyout solutions may consider factors such as the age and marital status of members when determining pricing and estimating the future obligations associated with the pension fund. Accurate information on marital status enables a more precise assessment of the liabilities being transferred and helps ensure the pricing reflects the actual risk profile of the fund. 

Data Accuracy and Compliance:
Maintaining accurate member data, including marital status, is crucial for regulatory compliance and data accuracy purposes. Pension funds are typically required to maintain up-to-date records and comply with legal and regulatory requirements. Accurate member data, including marital status, ensures compliance with these obligations and facilitates efficient and accurate reporting. 

MM. Spouse can assist schemes to discover undeclared spouses within their membership, one of the key considerations when planning the end game strategy.

Contact our experts today to see how MM. can assist.

Streamline Beneficiary Tracing with MM. Beneficiary: Automated Beneficiary tracing for Enhanced Member Records

MM. Beneficiary allows pension providers to harness the power of automated beneficiary tracing to ensure accurate distribution, minimize unclaimed funds, fulfil fiduciary responsibilities, and comply with legal requirements.

In this blog article, we will explore how MM. Beneficiary can revolutionize beneficiary tracing for UK pension schemes and deliver unparalleled benefits to both providers and beneficiaries.

Accurate Distribution Made Easy:

With MM’s advanced algorithms and data analytics, pension providers can effortlessly locate and identify beneficiaries, ensuring seamless and accurate distribution of pension benefits. MM’s intelligent tracing tools eliminate the hassle of manual searches, saving valuable time and resources.

Minimize Unclaimed Funds

MM’s sophisticated beneficiary tracing capabilities help pension providers identify unclaimed funds swiftly. By promptly notifying eligible beneficiaries, providers can minimize unclaimed funds reducing their administrations costs.

Fiduciary Excellence

MM. Beneficiary empowers pension scheme trustees and providers to fulfill their fiduciary responsibilities. By leveraging MM. Beneficiary’s comprehensive beneficiary tracing features, providers demonstrate their commitment to responsible governance, legal compliance, and safeguarding beneficiary interests. MM. Beneficiary ensures accurate and fair distribution, minimizing legal and reputational risks.

Legal Compliance

With MM. Beneficiary, compliance with data protection and privacy regulations is effortless. MM. are certified to the ISO27001 standard of data security, ensuring that personal information is handled securely and with utmost confidentiality. Pension providers can trust MM. Beneficiary to facilitate compliant beneficiary tracing, mitigating any legal risks.

MM. Beneficiary equips pension providers with cutting-edge tools to ensure accurate distribution, minimize unclaimed funds, fulfill fiduciary responsibilities, and comply with legal requirements.

By leveraging MM. Beneficiary’s capabilities, pension providers can unlock the true potential of beneficiary tracing, enhancing their operations, member trust, and overall financial well-being.

Embrace MM. Beneficiary and Contact Us today and propel your scheme’s administration to new heights of efficiency and success.

Dashboard-Ready Data with MM.

Discover the power of MM. the ultimate data management solution for pension providers.

The Pensions Regulator has said it to be ‘more important than ever’ for trustees and scheme managers .

In her blog post on TPR’s website, Louise Davey (Director of Regulatory Policy, Analysis and Advice) states the potential of the dashboard to ‘transform the pensions industry’ but that they ‘will only be as useful to savers as the data they rely on – having the data isn’t enough, it needs to be correct.’

With MM.’s suite of products – MM. Existence, MM. Spouse, MM. Beneficiary, and MM. Residence – trustees can ensure their data accuracy is at a point where they can be confident that it can be used in the Dashboard environment.

MM. Existence

Screen for deceased members within your pension scheme and maintain accurate records while streamlining operations and preventing unnecessary payments and reducing the risk of fraud.

MM. Spouse

Find undeclared marriages within your membership to ensure fair pension calculations and equitable distribution of benefits.

MM. Beneficiary

Locate members’ beneficiaries quickly and accurately in the event of a member’s passing, facilitating seamless benefit transitions.

MM. Residence

Validate and update addresses. Ensure accurate communication by validating addresses and discovering new addresses where members may have relocated.

Prepare your membership data for the Pension Dashboard Program.

Contact our experts today to assess your data needs, experience MM.’s transformative solutions, and streamline your pension company’s data management with ease.

Embrace the future of pension provision with MM. as your trusted partner.

Unlock Your Pension Potential with MM: Your Buy-in / Buyout Data-Ready Partner

Data quality & currency is crucial for efficient pension benefits management. MM. helps you achieve the ‘quick wins’ outlined by the Pensions Administration Standards Association.

MM. can offer Complete, Accurate and Consistent Data: Our solutions verify addresses, trace to new addresses as well as finding beneficiaries and spouse information which will be looked upon favourably by Insurers.

The consequences of incomplete and poor-quality data: Inadequate data leads to higher costs and delays in your de-risking journey. MM. mitigates these risks with comprehensive data solutions.

PASA’s Quick Wins:

Common Data Excellence: We verify addresses and provide accurate member information.

Complete and Consistent Data: Regularly confirm a member is living as stated with MM. Residence. Suppress out-dated addresses and trace to new.

Marital Screening for Costing Accuracy: MM. Spouse provides comprehensive marital screening, allowing you to identify spouses, civil partners, or eligible cohabiting partners. By gathering their names and dates of birth, you can enhance your costing accuracy and make informed decisions during valuation or de-risking.

Mortality Screening: MM. Existence can identify undisclosed deaths within your membership. Reduce premiums by conducting this exercise for deferred members, who might not be apart of your routine Screening.

Contact us to streamline your buyout process with high quality data with MM: Your data-ready partner!

Source: https://www.pasa-uk.com/wp-content/uploads/2023/02/Buy-in-Data-Guidance-FINAL.pdf