The Pensions Regulator (TPR) has launched a new regulatory initiative targeting defined benefit (DB) and hybrid pension schemes to assess how they are preparing their data for connection to pensions dashboards.

The initiative will focus on the readiness and accuracy of value data, as TPR warned that poor preparation could result in members receiving incomplete or incorrect pension information.

Around 2,600 schemes are required to connect to pensions dashboards by 31 October, with TPR confirming that 75 per cent of member records are already connected.

Schemes will need to match dashboard users to their pension records and return recent and accurate pension information within statutory timescales.

TPR said pensions dashboards have the potential to “transform” how people engage with retirement savings, but stressed this would only happen if the information displayed is “complete and correct”.

Therefore, the new regulatory initiative will target 240 private-sector DB and hybrid schemes, with findings from the work expected to inform discussions on the timing of the launch of the MoneyHelper dashboard.

TPR noted that previous interventions had shown schemes were making good progress on matching data, which is used to identify dashboard users, but that preparations for value data were less advanced.

The regulator highlighted that this is a particular issue for DB and hybrid schemes because, unlike defined contribution (DC) and some public service schemes, they do not currently have obligations to issue annual benefit statements.

As a result, pension value data is more likely to be out of date.

TPR executive director of market oversight, Ben Gunnee, said: “Data readiness goes beyond matching people to their pensions. Schemes need to be ready to return the correct values to members.

“If schemes do not prepare this information in advance, they risk overwhelming their administration teams and, more importantly, risk providing members with incorrect information.”

Gunnee added that TPR would continue to support schemes “through guidance, engagement and regulatory action where necessary” to ensure dashboards help savers “plan confidently for retirement”.

As part of the initiative, TPR will assess whether schemes can provide pension values that are recent, accurate and returned within required timescales.

The regulator said pension values should generally be no more than 12-13 months old, warning that inaccurate data could lead members to make “poor retirement decisions” and cause “serious harm”.

Schemes will also need to ensure values can be returned within legislative deadlines, including within a few seconds when values have already been calculated.

Where values are out of date, schemes must calculate and return them within three days for DC pensions and within 10 days in all other cases.

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