Is your pension administration compliant for now or forever?
The Dutch pension transition is accompanied by sweeping changes. No pension fund will get away from it. Many pension funds will have submitted an implementation plan and communication plan. The implementation plan will include - if all goes well - an analysis of the data quality before, during and after the transition and a justification of how that data quality is secured during these phases.
But after is a very broad term. The guidance for the communication plan explicitly states that post-incorporation communication must also be included. Compliance does not stop after incorporation. Now that DNB has so explicitly set requirements for ongoing data quality, you can expect that to never go away. Get clean is here to stay. But how do you move from Get clean to Stay clean?
By now, most parties will have had an external audit performed on the quality of their data. They have taken a good look at all the data and made an assessment of the data quality. Next:
- A plan and impact analysis should be made for data correction
- The pension needs to be incorporated (migrate and convert data)
- The data of the old pension provision and the data of the new situation must be presented to the participants side by side in different forms of communication
- The quality of the data must be guaranteed on an ongoing basis.
Grip on the data
For most pensions, the transition is an exercise of unprecedented magnitude. The responsibility lies with the pension funds, the work mostly with the pension administrator. As a result, the data of the participants is often also managed by the pension administrator. Still, as a pension fund you want to keep a grip on the data of your participants. By having free access to the data, you as a pension fund can:
- Inform and serve participants better
- Better identify risks
- Calculate the impact of alternative scenarios without making a request to the administrator.
Stay clean
So as a pension fund you want to have the data. And you also want a continuous assurance of the quality of that data. For all the benefits of having the data at your disposal, as just mentioned, the rule is: Garbage in, garbage out. But an annual external check as performed for the Get Clean action is a huge drain on your resources. You want a unique Stay Clean solution that provides constant screening on your KDEs, your Critical Data Elements. And also on additional data points specific to your fund.
Clean KPIs and dashboarding
No one is perfect. And participants and administrative staff at pension administrators are ultimately just people. Therefore, it is unrealistic to expect a 100% clean data set. But when you start monitoring data quality on an ongoing basis, you can, on the one hand, identify peaks and valleys in quality and thus catch risks earlier. And on the other hand, you can test the dataset against Clean KPIs: criteria for data quality. A Clean KPI could be that 95% correct data is sufficient. You can then start setting ambitions. By translating the complete dataset into a dashboard, you can get much more management information out of your database and also start steering proactively based on data.
Rulecube has already developed a dashboard for this Based on the KDEs determined by DNB, this provides insight and alerts for your pension fund. Rulecube makes it simple to add new checks and also combine and compare with data from other datasets.
Want to know more? Request a personal demo using the button below.