PASA Publishes Guidance On DB Calculation Accuracy

PASA's Data Working Group has published guidance for DB schemes in relation to the correct administration procedures in the calculation of scheme benefits. It recommends using a "benefit specification document" for all types of benefit calculations, so that all stakeholders approve and use the same approach, thus reducing the risk of mistakes.

The document should cover the legal basis of benefit calculations under the scheme rules, as well as agreed "house practice" methods used, which may not be explicitly set out in the rules. Different documents may relate to different scheme sections or benefit bases. While benefit calculations are often automated, manual calculations will sometimes be needed where benefits are more complex.