The Department for Work and Pensions (DWP) has shared new pensions dashboards guidance, setting out the issues pension scheme trustees or managers should consider if they are applying for a deferral of the connection deadline.

Any applications for a deferred connection will need to be made by 8 August 2024, in line with the relevant pensions dashboards regulations.

The guidance outlines the specific circumstances in which trustees or managers can apply to defer connection of their scheme by up to 12 months.

This includes any pension schemes that had embarked on a programme to transfer the data held by the pension scheme to a new administrator before 9 August 2023; and/or had entered into a contract containing an obligation to retender the administration of the scheme and the timetable for this is reasonable and conflicts with the connection deadline.

However, the trustee or manager will also need to provide evidence to show that complying with the connection deadline would be disproportionately burdensome, or could put the personal data of members at risk.

This means that changing administrator alone would not be considered sufficient reason to defer connection beyond 31 October 2026.

"It is DWP’s primary objective to ensure that pensions dashboard services are made available for use by the general public at the earliest opportunity," the guidance stated.

"Therefore, it is expected that work by a pension scheme to change administrator should be carried out in an efficient way and consideration should also be given to any connection guidance issued by The Pensions Regulator, the Money and Pensions Service, or DWP."

All applications for deferral must also set out the steps being taken to ensure that the pension scheme can connect to the dashboard digital architecture at the earliest opportunity.

Where an application has been granted, pension schemes will be notified of their new connection deadline, which will be no later than 31 October 2027. Permission to defer connection can only be granted once.

Broadstone pensions dashboard delivery manager, Jon Pocock, hailed the new guidance as a "common-sense" approach for trustees or managers who may need to defer connecting their pension scheme to the digital architecture by up to a year.

He stated: “It is encouraging that the parameters for deferral are relatively limited as it is vital for a successful dashboard launch that full service covering as many savers as possible is achieved at the earliest possible opportunity.

“Schemes will only be granted a delay if they have started a data transfer to a new administrator or recently entered into a new contract retendering the administration of the scheme – changing administrator alone is not sufficient reason.

“It marks another small step towards the implementation of the project that has the potential to fundamentally reshape how pension savers view and engage their pots so we should give it our full support as an industry.”

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