Revealed: The top ten most common pension errors

KPMG analysis of over 100,000 member records reveals the most common administration failings and how they are increasing fund liabilities by up to 5%.

The professional services firm compiled a list of the top 10 errors in occupational scheme member records found by its data quality tool, KLean.

It discovered over a third of all members' scheme records had some NI data missing with 22% missing some entries and 12% missing the complete history.

The full top ten is:

1. Missing entries in National Insurance history (22%)
2. Guaranteed Minimum Pension figures missing (17%)
3. Member's Normal Retirement Date inconsistent with expected Normal Pension Age for benefit category (13%)
4. National Insurance contributions / earnings history completely missing (12%)
5. Date of leaving scheme on or before date joined scheme (6%)
6. Missing contributions (6%)
7. Date pension commenced unknown (6%)
8. Original pension missing (5%)
9. Salary history completely missing (5%)
10. Salary data present after date of leaving scheme (4%)

KPMG Partner Roger Higgins said: "These findings show that many schemes still have a long way to go in meeting the Pensions Regulator's data quality targets."

The firm said the failings could lead to members being paid the wrong benefits and could increase fund liabilities by up to 5%.

This research comes as the Pensions Regulator continues its drive to improve standards in administration.

Higgins said: "Faulty pensions data has long been a recognised problem. However, until the Pensions Regulator's recent campaign, there was little impetus for action."