Pension trustees could end up paying the price of poor quality pension administration in the future if they do not take the time to invest in good quality administration today, warned Barnett Waddingham partner, Carole Ward, speaking at a session on quality administration at the firm’s Annual Pensions Conference in London yesterday.
During the session, Ward said: “Getting administration correct is paramount to any pension arrangement. Trustees are often under pressure to keep costs to the bare minimum; however this can have a knock-on effect further down the line as poor administration can lead to errors and inconsistencies which can prove costly for the scheme and its members”.
Ward also revealed the results of an online poll conducted in conjunction with the Pensions Management Institute (PMI)*, which revealed that well over half (63%) of poll respondents felt that cost is the most significant obstacle to maintaining good quality pensions administration.
Commenting on the poll Ward said: “While it is not an entirely surprising figure, it is disappointing that such a high number of the poll’s respondents cite cost as the biggest obstacle to maintaining quality administration. Trustees need to understand that by investing in good quality administration now, they can avoid paying for the mistakes of poor administration in the future - the long-term costs of not doing so can massively outweigh the costs of putting good administration processes in place now.”
Barnett Waddingham’s Annual Pensions Conference brought together 200 delegates from the pensions industry yesterday at Lancaster London Hotel in London. In addition to Carole Ward’s session, delegates heard about the latest hot topics affecting the industry from DC Governance to current investment markets from an array of Barnett Waddingham’s experts with talks also from spokespeople from Goldman Sachs and law firm, Eversheds LLP. The conference also included a keynote speech from the former Chancellor of the Exchequer, Lord Lamont.
Danny Wilding, partner at Barnett Waddingham, said: “Our annual conference presents a range of expert views from Barnett Waddingham and external speakers on the critical issues currently affecting the economy and pensions professionals. Delegates are encouraged to reflect on some of the big challenges and opportunities facing scheme trustees, sponsors and the industry as a whole and can question the speakers first hand on matters that are relevant to them.”
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