A data road trip with Herbie the love bug
I woke up this morning to “I’ve been driving my car: it’s not quite a Jaguar” by the band Madness playing on my bedside radio/alarm. Then having had that song etched on my brain for the day the analogy with data struck me as I drove to the office along the M25! After all the majority of us have been “driving around” for thirty or forty years with our scheme data delivering competently on our objectives for our particular scheme i.e. mainly collecting contributions in and paying benefits out. That is not to say we have not had the odd data hiccup and problem along the way but generally our data has been fine.
However, if pressed, most of us would confess that our data is not of a “Jaguar standard” but probably more akin to Herbie “the love bug” the VW beetle with the number 53 etched on it’s side complete with smiling grill, using my analogy!
For some time now the Pension Regulator have cranked the handle on improving both the quality of our common and conditional scheme data. My worry is that tPRs guidance could take us to a place where we focus on what can be easily measured and reported with only limited strategic thought and consideration. However, having a coherent data strategy that aligns the quality of our data with our scheme specific objectives is a fundamental must have for all schemes i.e. our aims may well include benefit structure changes, de-risking or scheme wind-up amongst others.
Although our VW beetle might not be the prettiest car in the car park it will get the children (plus their mates) to school, to the stables and to the rugby with minimal fuss and at a reasonable cost. It needs a service and MOT at the appropriate times but that’s probably about it.
Likewise, if we require our schemes data quality to be merely fit for purpose in terms of providing a platform for scheme administration that caters for the odd benefit/legislative change along that journey, then focusing on ticking tPRs common and conditional data boxes is probably a sensible pragmatic approach.
However, in these tough economic times we might be considering something a little bit different such as using our trusty VW beetle to get us to our holiday in Europe, rather than fly. We might even be considering selling it to a VW beetle enthusiast at the right price!! In these circumstances we might consider sending it to the bodyshop for some dent removal, a respray and a top end valet. However, we would first consider the value of doing these both financially and from a risk perspective, e.g. to avoid a breakdown in France or to get the buyer to notice those special additional features, or the fact it has had only one previous very careful owner.
In a similar vein if our schemes are focusing on de-risking exercises such as CETV, PIE or buy in/outs then we might want to consider the value of data cleansing particular membership sectors or data items. Here, our experience suggests a proactive and targeted approach to data cleansing could be financially beneficial e.g. focusing on a GMP reconciliation that cleanses the major discrepancies between our records and those held by NISPI may well positively impact on any buy-out prices quoted.
In short, having a fully considered data strategy is fundamental to delivering your future scheme aspirations. Indeed, involving your administrator early in its formation is also key, as like restoring a car, data cleansing can take time and some planning to achieve the desired outcome. So, fully understanding your schemes intended data journey and ensuring it is then fit for purpose at the right time will serve you well.
by Michael Mann
Administration Director - Projects