Pensions & benefits
The deadline for pension schemes to be dashboard ready is getting closer. Dashboards are digital services — apps, websites or other tools — which savers will be able to use to see their pension information in one place.
As a pension trustee or scheme manager, you will need to connect with and supply pensions information to savers through dashboards. Some schemes are already making good progress in connecting to the ‘ecosystem’ by their staging date, but we know many are struggling with competing priorities. By the end of 2023 more than 50% of UK pension members will have to have schemes connected to the ecosystem.
There will be significant work involved in successfully connecting to pensions dashboards. Regardless of your connection deadline, we strongly advise you to start preparing as soon as possible. For example, administrators need to understand where this fits alongside other priorities and factor dashboard readiness timescales into wider data cleansing projects as part of their strategic journey planning.
With the threat of fines for non-compliance, we are helping schemes get ready for dashboards and to start looking through a dashboard lens.
Key actions for trustees
- Establish a dashboard readiness working party (if not already done so) and charge it with drawing up a plan of action to ensure that all necessary systems and processes are in place by the time the scheme is required to connect with and supply information to the dashboards ecosystem, including dealing with member queries that will inevitably arise once the ecosystem is live
- Assess what data will need to be supplied, from where it will be obtained, the quality of such data, how it will be ‘digitised’, and any calculation processes that will be needed
- For DB schemes, consider whether administration systems currently support the default approach to deferred pensioner revaluation and, if not, whether the simplified approach can be used
- Consider whether to use a third party to interface with the dashboard or connect directly
- Consider the best approach to matching scheme data with a find request
Key actions for Scheme administrators
- Ensure that all data needed either directly or to support calculations for the dashboard has been suitably cleansed
- Schedule development time for any changes to administration processes necessary to support find requests. Pay particular attention to the timescales for providing value data
- Schedule development time for any changes to calculation routines necessary to provide value data, in particular for deferred members of DB schemes
How we can help
We are helping pension schemes develop their plan of action, and to agree what next. Projects of this nature could be problematic where there are resource constraints, particularly for in-house administrators and where there are complex benefit structures.
A good way to start the process can be getting the key parties together in a workshop. You can think about the problems you might face (eg different data matching requirements for DB and DC administrators for individuals with benefits in both sections), how these can be mitigated, who needs to be involved in the project and when will tasks need to be done.
LCP has a team of pensions dashboards experts available to help you plan your connection journey and make sure you are dashboard ready. We can help by:
1. Scene setting & workshop
This could involve:
- Establishing your data matching requirements
- Setting up a governance structure
- Fitting in with existing projects
2. Gap analysis
We’ll identify any gaps in relation to the project and how best to address these given your resource and systems requirements.
3. Plan of action
The outcome will be a bespoke plan based on your scheme’s circumstances which will be the building block of your project.
Please contact one of our experts below to start your pensions dashboard programme.
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