The Pension Agreement assumes the collective transfer (invaren) of the current pension entitlements into the new pension scheme. This means converting existing rights and entitlements to the new contract. The pension fund and the pension administrator play important roles in this process. To make sure this transition to the new pension scheme is carried out correctly, it is important for the data to be in order and thus ready for transition. In this way all participants in the new pension scheme get what they are entitled to and unnecessary mistakes are avoided.
Data correct
In order to get the data ready for transition, the following activities must be performed. We are using the metaphor of a ‘leaking tap’:
The volume of data and their complexity creates a challenge in carrying out these activities.
‘Leak above water’
- Defining the critical data elements for the collective transfer.
- Determining and aligning the ‘definition of good’ of these critical data elements.
- Performing baseline and follow-up measurements, by setting up a mechanism to establish the ‘definition of good’ of the critical data elements for the collective transfer.
‘Tap closed’
- Set up/modify a data competency including analysis of the extent to which the organisation’s data governance complies with DNB’s ‘Good practice robust pension administration’ guidelines.
- Establish a mechanism to simplify complex arrangements as much as possible prior to the collective transfer in coordination with social partners.
- Improve processes and controls to prevent new data quality issues (including continuous learning loop).
‘Mopping up’
- Establishing a mechanism for error correction of the critical data elements (failure process).
- Establishing a mechanism for monitoring the progress of cleaning the critical data elements and preventing new issues in them.
Getting the data ready for the transition is complex and can be extensive. Strategic choices must also be made by the pension fund and its stakeholders prior to this process
What can PwC do for you?
We are more than willing to discuss with you the concrete steps you will need to take in orde to gett your data ready for this transition. We offer specific frameworks, roadmaps and analysis tools to do this in the most efficient way possible. PwC has knowledge and experience in the areas of data management and data quality within the pension sector, as well as in other financial sectors. PwC has multidisciplinary teams, which combines in-depth pension and assurance knowledge with data analytics skills. Wish to learn more about your specific situation? Please do not hesitate to contact us.
