The Pensions Regulator (TPR) has published its new pensions dashboards compliance and enforcement policy, urging pension scheme trustees to plan ahead for pensions dashboards or face regulatory action.

In a blog post shared alongside the new policy, TPR interim executive director of strategy, policy and analysis, Nina Blackett, outlined the regulator’s expectation for trustees and scheme managers to comply with their pensions dashboards duties, and the action it will take if they don’t.

“Our goal is to help schemes take the right steps now, so they are ready with the right data, ready for the dashboards switch on, ready to help make a significant impact on the saving outcomes of millions of people,” she stressed.

“If schemes prepare properly then we are less likely to use enforcement action to ensure they do the right thing. Act now, so we don’t have to.”

She also emphasised that the new policy should not be seen as a regulatory stick, clarifying that while the policy is “clear” on the potential policies for non-compliance, it is also demonstrative of TPR’s risk-based and proportionate approach.

“If we reach the stage of having to use our powers against the trustees or scheme manager of a scheme, it means savers are already at risk of not getting the full picture of their retirement savings. Neither we nor the industry would want that to happen," she added.

Discussing next steps, Blackett encouraged scheme trustees to read TPR's latest guidance, emphasising that “knowing your duties is the first step”.

“In particular, we will expect trustees and managers to be able to demonstrate their ‘having regard’ for the Department for Work and Pensions (DWP’s) connection guidance,” Blackett stated. “This is not just about meeting TPR’s expectations, but also complying with the law.”

She also encouraged trustees to plan to connect in a staged and orderly manner in line with DWP guidance, warning that schemes face increased risks of non-compliance and reputational damage if they don’t connect promptly.

In addition to this, Blackett stressed the need for trustees to manage resource according to their plan, arguing that trustees must establish “robust” controls and contractual agreements when selecting and managing service providers.

However, Blackett argued that while many schemes are getting ready to connect in the right way, there are still some schemes not measuring their data or trying hard to improve it.

Given this, she encouraged schemes to ensure their data is "robust and accurate", emphasising the need for trustees to review and improve the quality of their member data, as well as reviewing and adjusting the controls in place.

As part of this work, she also confirmed that TPR will be engaging with “hundreds” of schemes this autumn, asking them to account for how they are measuring and improving their data, with the potential for regulatory action where trustees or scheme managers are failing to meet expectations.

Blackett added: "Timely action is essential. Trustees and scheme managers must grip their obligations diligently and work closely with their providers to avoid the pitfalls of last-minute risks. We expect third parties to support schemes with these tasks.

"Compliance is not a one-off activity and can’t be rushed. Our preparation checklist is a helpful tool to keep on track with duties. 

"We will carefully monitor and identify any risk of non-compliance. But we hope that for most, enforcement is not required. Instead, we encourage schemes to do the right thing now, and help savers reach the outcomes they deserve."

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