New research suggests that many employers are underestimating the risks associated with poor defined benefit membership data.
According to a study conducted by Aon Consulting, more than three-quarters of businesses contacted believe that the quality of their membership data is either very low or low risk to future pension arrangements.
Ian Bloxham, client relationships and development director for Aon, said: "Poor membership data carries a risk of unidentified liabilities emerging in the future bringing uncertainty into scheme funding decisions.
"Data quality can have a significant effect on price. Indeed effective management of your scheme data can potentially save many millions of pounds when sourcing a buy in, or buy out, policy."
In light of the study, Aon is urging employers to review their processes and address any data quality issues.
Indeed, recent research from Experian QAS found that 84 per cent of organizations were planning to invest or will consider investing in data quality initiatives over the next year.
Posted by Paul Newman