UK - Most UK employers running defined benefit schemes are underestimating the risks associated with poor-quality data, according to Aon Consulting's latest employer survey.
 
More than three-quarters of employers view the quality of membership data as either of very low risk or low risk to their pension arrangements.
 
Just over a third of employers (35%) consider future unknown liabilities of high, or very high, risk, while 46% perceive certainty of value placed on scheme liabilities as a high risk, or very high risk, to their business.
 
Aon said uncertain scheme liabilities were a major consequence of poor-quality membership data and that the results of the survey suggested employers were failing to understand the dangers involved.
 
Other survey findings were that nearly two-thirds of employers (60%) considered certainty of cash contributions to be of low to very low risk, while 30% perceived intervention by the Pensions Regulator to be of high to very high risk to their business.
 
Ian Bloxham, client relationships and development director at Aon Consulting, said data quality could have a "significant effect" on price.

"Indeed," he added, "effective management of your scheme data can potentially save many millions of pounds when sourcing a buy-in or buyout policy."
 

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