While there is good guidance set out by the Pensions Administration Standards Association (PASA) for trustees when creating a data matching strategy, it is ultimately the responsibility of trustees to determine how to get their data-matching process in order. Addressing this challenge now will result in cost-saving benefits once dashboards are officially launched, as well as saving time in the long run.
Trustees should be considering several issues around their data to make sure they are in the best position ahead of going live with their dashboards.
Expand your data item options
The key bits of data needed to verify a member's identity are their surname, date of birth, and National Insurance number. If all three of these match exactly, then it is highly likely that the member's identity has been confirmed with certainty.
However, given the data matching issues that are likely to arise – not least that users will not be compelled to provide a National Insurance number - widening your data options to include unique data items alongside traditionally used information is key. This could include email addresses and mobile numbers.
Consider your combinations
The way data items work together is important. All possible combinations should be considered to determine what could be positive or possible matches. This means examining the relationships between various data items and cross-referencing them with other relevant information. By taking the time to explore all possible scenarios, you can create a robust set of matching criteria.
Assess your matching criteria
Trustees have a responsibility to ensure that their criteria for matching potential members with their records should have two important characteristics. First, it should provide "sufficient coverage" by identifying the highest possible percentage of potential matches.
Second, it should have "sufficient focus" by accurately defining the data items to minimise the possibility of "non-members" being incorrectly identified as possible matches.
Although a full assessment of the matching criteria cannot be done until the dashboards are made public, it is important to invest time now to make the matching criteria as reliable as possible. This will provide a strong foundation for when the dashboards go live. So, trustees should prioritise tracking match performance and consider ways to improve the criteria.
Ella Holloway, Senior Consultant at LCP, commented: “Creating data matching criteria is a complex task that requires careful consideration, and there is no one-fits-all approach. However, smart choices made during this period can lead to a more seamless transition into the new dashboard world.”
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