The Pensions Management Institute has launched a best-practice guide for pension administration agreements.

The guide is a revised version and is mainly relevant for third party administrators, although it is also applicable for schemes where administration takes place in-house.

It sets out key principles of pensions administrations agreements and has been revised in collaboration with governance and administration specialists Muse Advisory and law firm CMS.

PMI chief executive Vince Linnan said the new guidelines have been implemented to correct a historical trend for variation on data and transition projects in administration agreements.

"Pension administration agreements are an important tool in governing the relationship between the trustees of the pension scheme and their appointed administrator.

"However, they have, historically, been extremely variable in covering some key aspects - such as data and transition projects, which are now, quite rightly, gaining increasing attention.

"Our latest guide reflects this significant current industry shift towards demonstrating best practice and excellent governance in all areas of scheme management – of which administration plays a vital, if very underrated role."

Linnan went on to say the guide will be a valuable tool to all trustees and administrators (and for employers in some cases) in identifying the key principles to be considered when determining how best to set out agreements.

He praised Muse and CMS for their "vast industry expertise in pension scheme administration", adding that their input to the guide had been "vital" in establishing the framework and the governing principles.

"We are grateful to both firms for the hard work they put in to producing this guide," he said.

The guide is available to download from the PMI website.

There will also be a presentation by Muse Advisory and CMS on the guide at the PMI Administration Summit on Friday 6 March 2015.

First published - 13.11.2014

Lindsay.sharman@wilmington.co.uk