PASA has published new Guidance from its Data Working Group, focusing on Contingent Spouse Pension (CSP) construction and the critical role of data quality in ensuring accurate and reliable outcomes.
The Guidance provides schemes with a practical framework for assessing, calculating and maintaining CSP values. It explores key data considerations, governance requirements and a range of calculation approaches, helping schemes balance accuracy, cost and operational efficiency.
CSP represents a vital benefit payable to a surviving spouse, civil partner or dependant. The guidance highlights the importance of robust data in supporting insurer transactions, actuarial valuations, pensions dashboard readiness and day to day administration while also improving member outcomes and confidence.
The document doesn’t prescribe a single methodology. Instead, it sets out multiple approaches, from first principles calculations to pragmatic estimation techniques, enabling schemes to select an approach aligned with data availability, purpose and scheme complexity.
David Fairs, PASA Chair, commented: “High quality data sits at the heart of effective pension administration. This Guidance supports schemes in making informed, proportionate decisions on how contingent spouse benefits are calculated and maintained. By improving data quality and governance, schemes can enhance operational efficiency, strengthen readiness for transactions and deliver better outcomes for members and their dependants.”
Kristy Cotton, Chair of the PASA Data Working Group, added: “Contingent spouse pension calculations can be complex, particularly where historical data is incomplete or inconsistent. This Guidance brings together practical experience from across the industry to help schemes navigate those challenges. It encourages a structured, transparent approach, enabling trustees and administrators to understand the trade-offs involved and implement solutions suited to their data and objectives.”
You can find the Guidance here.
