We are moving ever closer to pensions dashboards becoming a reality that will make a real difference to how people access their pensions information.

Such a big change will require a lot of effort from the pensions industry, but also from the government and regulators. It is vital that there is a co-operative spirit to navigate through this complex environment.

At the Pensions Dashboards Programme (PDP), we are committed to being open with industry about dashboards, how they will work and what the obligations will be.  

As pension providers and schemes move towards their different dates for connecting to dashboards, I thought it would be useful to to demystify some of the more confusing aspects of dashboards. 

This time, I wanted to look at bringing some clarity to getting ready for dashboards.

Pension providers and schemes need to start working now

One of the biggest misunderstandings I’ve had to deal with is trustees and administrators who think that no work is needed until the point that dashboards are available for the public to use.

Connecting pensions information to dashboards is an earlier, separate requirement from dashboards being opened up to any user.

In reality, the first window for mandatory connection to the dashboards ecosystem, for larger pension providers and schemes, opens in 6 months. You need to be working towards being ready for your window for connection – and ideally, you should start preparations now.

There are different tasks you need to undertake

Getting ready for dashboards requires a number of different steps across different aspects of your organisation. Our website provides a detailed guide on the steps to connection to dashboards.

You will need to decide how your pension provider or scheme is going to connect to the ecosystem – either directly or using a third party. This will have an impact on whether you will need to undertake conformance testing to show that you can meet the thorough set of mandatory standards that pension providers and schemes, and dashboard providers, will need to be compliant with.

If you are using a third party, you will still need to assure yourselves that they meet the standards, but you will not have to undertaking testing yourselves.

One of the most important of steps is data. It is critically important that your data is accurate and up-to-date, and that you have a clear set of criteria for the data you will use to match people to their pensions. I will go into this in more detail in future weeks.

It’s vital that you are familiar with the finalised first versions of standards which will be published in the coming weeks. Once they are approved by the Secretary of State, these will become the requirements that you will have to meet.

You need to make sure you have the processes in place to ensure that you, and a third party if you are using them to connect, are meeting your duties.

Dashboards will transform retirement planning for people with a pension, but it will also create new opportunities for pension providers and schemes to engage with their members and customers.

Part of getting ready for dashboards involves reflecting on how you can enhance your communications around pensions savings, and begin planning for these changes to coincide with dashboards being publicly available.

Getting ready is not just an exercise for administrators

Dashboards will help to revolutionise pensions engagement, and the scale of the task requires careful oversight and planning. Dashboards readiness needs to be on the radar at the highest level.

Trustees and senior decision-makers will have legal duties that they need to meet, so they should be regularly discussing preparations for dashboards, with readiness as a standing item on the agenda for board meetings.

You need to be working with administrators, your IT team and your legal advisers. You should engage with any suppliers you are using around data. If you’re using a third party to connect to dashboards, you’ll need to ensure that they understand the timeline for connection and make sure you can take decisions that enable them to progress their work.

Pension providers and schemes are not just being left to get on with it

It’s important to recognise that you are not alone during this process. I often say that we will make a success of pensions dashboards by working together across industry, Government and regulators.

As part of our work, PDP regularly engages with industry to explain dashboards and understand the challenges that pension providers and schemes are facing. Throughout the year, we frequently publish articles, as well as attending briefing and speaking engagements to take questions.

PDP regularly produces guidance and videos with tips on what you need to know about getting ready for dashboards. At the same time, regulators and industry often produce advice and share their experiences of preparing for dashboards – for example, detailed information from The Pensions Regulator can be found on their website.

Share Story: