Pension Administration Standards Association

Transcription

1 Pension Administration Standards Association Fergus Clarke Executive Director PLSA North London Group 21 st June

2 Post Lunch your views What does good administration look like? 2

3 What does good administration look like - your views To be populated with audience views 3

4 Bad Administration - What s the evidence? 21 st Century Trusteeship* (July 2016)..are concerned that the degree of continued interaction and involvement with administration processes was often said to be minimal, especially among smaller and medium-sized schemes...administration and record-keeping are seen as low priority by some schemes, particularly at the smaller end of the spectrum..lack of regular monitoring of activity (e.g. through attendance of administrators at board meetings and effective use of SLAs), reactive approaches to problems and general lack of detailed involvement *Source 21 st Century Trusteeship and Governance July tpr

5 Bad Administration - What s the response? 21 st Century Trusteeship outcomes focus on the key areas they think are vital for good member outcomes including administration and recordkeeping signpost trustees, scheme managers and others to existing material and create further practical tools and products to help those managing pension schemes apply our messages to their own circumstances and take action (e.g. checklists, templates, best practice examples and case studies) Independent accreditation (such as that offered by PASA) has been recognised by the Regulator as one way trustees can evidence good governance

6 Good administration = Good Governance The Regulator said (February 2018 PASA Conference). Want Trustees to better appreciate the value of administration Administrators bridge the gap between trustee aspirations and genuine good governance Find more assertive ways of getting trustees to appreciate the value of administration Does this mean..act now or be forced to comply

7 Good administration requires.. In addition to a talented group of people.

8 PASA - A Community Interest Company Set up in 2011, by a small group of like minded individuals Independent body which has three core activities: 1. Defining and promoting good standards of pensions administration 2. Independent Accreditation process to assess and recognise the achievement of good administration standards 3. Delivering guidance to the industry 8

9 Standards 11 Standards focused on five key areas: 1. Stakeholder relationships Contractual relationship 2. Measurement and reporting reporting feedback error reporting 3. Operational risk operational procedures business continuity change control control assurance 4. Data 5. People Induction/competency Staff development 9

10 Standards, key factors Outcomes based Designed to be flexible to different situations common sense approach Recognise that each scheme is at a different starting point Designed to stretch - but not be unobtainable Designed to be relevant to all schemes trust and nontrust based Visit

11 Independent Accreditation

12 Accreditation Accredited Organisations RMG, UK Power Networks Hymans, Barnet Waddingham Lothian Pension Fund Applicant Pipeline in train Initial Stage Three Third Party Administrators One Local Authority Pilots for - Annuity provider, Master trust Five Third Party Administrators Two Master Trusts One Annuity provider One Local Authority

13 What else have we achieved? Members Code of Conduct Transfer of Provider Code Scams code in conjunction with PLIG - (v 2 coming very shortly) DC Guidance GMP Rectification Guidance and checklist Dashboard working group Administrator transfer Mediation service

14 Current Planned Activity DC Working group - Governance Guidance output Dashboard Data Guidance GMP Reconciliation case studies including stalemate cases Trustee Administration Governance Checklist

15 What next on our agenda? Working with other parties to drive up the administration agenda e.g. SPP, PLSA, PMI, ABI, Trustee Bodies More accredited organisations More members Continue close working relationship with tpr Drive forward with two key initiatives.

16 Initiatives Data - call to action Why bother? Avoiding the blame game Consequences action and inaction, financial, performance, development, customer service What do you need to consider Guidance and case studies E Administration Why bother? The art of the possible Readiness assessments How to guides Impact assessment tools

17 Come and get involved