ITM welcomes TPR guidance

07-Jul-2008

ITM, the independent data and administration consultant, welcomes TPR Guidance on winding up pension schemes.

Commenting on the new TPR guidance, John Broker, a Director at ITM said ...

‘ITM welcomes this guidance note and the drive to complete this process within 2 years. In our experience the quality of scheme membership data can seriously impact and delay the winding up process. The data audit and cleanse implications of winding up are frequently underestimated so it’s good to see that the Guidance has a strong focus on the need to undertake data auditing early in the process with a view to cleansing at the soonest possible stage.

The Guidance makes an excellent point that the cost of such an exercise could be more than easily recovered through the early identification of data errors. Apart from costs, the issue is rightly about ensuring that members receive the right benefits at the right time. The Guidance points out the criticality of surrendering a contracting out certificate in order to reconcile the GMP liabilities with NISPI and again directs trustees to making the earliest possible start with this task. In the data audits we undertake at ITM, when re-calculating GMP’s using our DAaRT software, there are always many discrepancies which we need to help trustees to resolve. So again a strong focus on this area in the Guidance is good to see.

Very significantly the Guidance points out that for ongoing schemes, data quality has vital importance, impacting on the valuation and investment strategy. The Guidance recommends and steers trustees to make an upfront investment to rectify data issues and to undertake data audits on a regular basis. ITM has pioneered this concept since it’s foundation 5 years ago so it is massively encouraging to now see this so strongly embodied in TPR Guidance.


Further Information / Media Contact
Please call:- John Broker APMI, Director, Sales & Marketing – 07912 943 366

ITM Ltd 5th Floor
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London EC3V ODD

Tel 0207 648 9990
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