Case Studies - Administration Projects

Case Study 1 - Data cleansing

We were retained by a major firm of Independent Trustees to carry out an audit of members' personal and benefit data held for a pension scheme which was entering the assessment period for transfer into the Pension Protection Fund.

Full scheme documentation was provided and we were able to assess the accuracy of the benefit calculations by recreating the benefit formulae in our own database systems.

We also carried out a full audit of members’ personal data ensuring relevant date records were valid and within acceptable ranges. Again, this process was largely automated using database applications.

From the data audit, we identified a significant number of members who had joined the scheme and accrued pension benefits before they were eligible to do so. As a result, their benefits were adjusted and contributions paid before their eligibility dates were refunded. This resulted in a 2% improvement in the scheme’s funding level.

Through the benefit audit process, we also found a number of members whose benefits had been calculated incorrectly. The scheme had been contracted out but the contracted-out liabilities had subsequently been transferred back to the State and the benefits structure amended accordingly so that the notional GMP for contracted-out service was deducted from members' scale pension benefit.

However, we discovered that details of the notional GMPs for some members had been lost and that certain members had, consequently, retired with overstated benefits since no deduction for the GMP had been applied.

Case Study 2 - Part-time member benefits rectification

Following a House of Lords ruling, our client was obliged to consider claims from several thousand current and former part-time staff for equal pension treatment.

A special department was established to consider the claims and those that were successful were passed to us. Our role was to calculate the revised pension benefits based on the new service periods, as well as the associated costs, and to provide the administrators of our client's occupational scheme with the data in a form that enabled them to update their records automatically.

This involved the creation and programming of bespoke databases with calculation suites designed to create output in the format required by the administrators. Eventually over 2,300 members' records were rectified.

Case Study 3 - Reinstatement of transferred members

Our client had made the decision to allow former members who had transferred out and were subject to the personal pensions mis-selling review, to apply for reinstatement to its pension scheme.

We were engaged to calculate the cost of reinstating individual members, to negotiate with the former members' advisers on behalf of the scheme and to provide data allowing the reinstatement of benefits and the necessary adjustment to records.

This assignment involved over 1,500 applications for reinstatement and was completed within the agreed timescales.