As all UK employers have set up a pension scheme for their staff and started to contribute, workers will be building towards a better retirement. This is great news. But there are some worrying signs that all is not well underneath the positive headlines.
Shocking 50% error rates revealed by new statistics:
pensionsync has analysed data representing contributions to over 10,000 schemes. This research reveals, shockingly, that data sent on behalf of employers to pension providers have a 50% error rate and must be sent back for correction. Such high error rates suggest the need for greater attention to be paid to data accuracy by pension administrators or employers themselves.
Organisations that use pensionsync reduce error rates down to 3%:
The use of pensionsync’s digital integration service between payroll or contributions managers and pension providers, without the need for manual uploading onto spreadsheets, has been shown to reduce error rates to almost zero. The pensionsync research proves that, although initially around half of the data is incorrect, once the automation has been put in place, and the User has cleaned and corrected the pension data within their payroll software (or other software application being used to manage automatic enrolment) then error levels reach just 3%.
Baroness Ros Altmann CBE – Chair of pensionsync said: “Workers need to trust that their pension contribution records are accurate. It will never be possible to ensure 100% accuracy, but having automation processes in place which constantly check and can then allow errors to be corrected promptly, will bring pensions administration into the 21st century. This can also ensure greater reliability, security and lower costs.”