Equiniti is estimating that about 17,500 contracting out records will need to be reconciled per day because of the end of contracting out in April 2016.  At this time, flat rate single-tier pensions will be introduced.

Currently, reconciliation errors reach as high as 50% in some of the schemes that use Equiniti to manage the process and most of the queries that Equiniti are addressing directly relate to issues like membership reconciliation and incorrect scheme data.

HR experts explain that with HMRC withdrawing its support for benefit queries in December 2018, schemes should consider putting measures in place immediately in order to hit the April 2016 deadline for registration.  It is expected that around 10% will not register to take advantage of HMRC’s free and dedicated contracting out reconciliation support team over the next 41 months.

Equiniti and HMRC have been spreading as much awareness as possible to educate on the upcoming deadlines and key factors in reconciliation consideration.  Equiniti’s operations director explains that contracting out reconciliation hasn’t really received the attention it needs and that in many cases many schemes that were thought to be in good shape were actually not.