It’s important for plan sponsors to have clean data on defined benefit (DB) plan participants to help them identify and validate deaths, locate participants and beneficiaries, and manage uncashed checks, according to speakers at a webinar, “The Data Dilemma: The Impact Bad Data Has on a Pension Plan,” presented by Pension Benefit Information (PBI) Research Services and DIETRICH.

Mike Irey, director of operations at PBI Research, told webinar attendees that plans can have inaccurate or missing personal identifiable information (PII) when data in older administrative platforms does not get updated or get carried onto a new system, or when data gets input incorrectly. A PBI Research study found 5% of all participant or beneficiary data is likely inaccurate or missing.

He said missing or inaccurate Social Security numbers can have the biggest and most severe impact, because they are often used to verify other information about a person.

“Plan sponsors can more easily clean up other data if they have the right Social Security number,” Irey said. “And to correct a Social Security number, the plan sponsor needs an accurate first and last name, date of birth and location—usually city and state.”

According to Irey, PBI Research found that having an inaccurate or missing Social Security number resulted in the highest likelihood of missing a participant’s death. “A study we did found a missing or inaccurate Social Security number resulted in 90% fewer found deaths,” he said.

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