How well do we really understand our Administrator?

As a management consultant for PwC, my specialism became operational reviews. Pensions administration service providers were facing the same challenges, cost pressures and efficiency needs as we see today. A few years later, I found myself being asked to head up an administration operation where I was often asked to lead service recoveries. This experience complemented the IT systems background and has given me a great foundation to understanding detailed pensions administration operations, the systems they operate on and pitfalls to avoid.

So how are trustees navigating and managing to govern effectively over this complex landscape? With difficulty I would suggest. I find myself interpreting into plain English the implications for what the IT Manager or Pensions Operations Manager has just said.

Looking ahead, we need to understand:

• What is really happening behind the scenes of a data cleanse?
• Do we understand the implications of digitalisation of data?
• What can we learn from the data we hold about our membership?
• Is AAF fit for purpose and what assurance is out there for trustees?

We can’t expect every trustee to be an expert on all aspects of pension scheme governance requirements, however, we can and should expect Trustee Boards to have a balance of skills and knowledge that include administration and IT expertise to sit alongside the more traditional experience. This has been an underrepresented area in the past and increasing this representation on Trustee Boards is becoming more important across the industry.