The pensions industry must wait for a revised roll-out schedule after the government announced a significant delay in its plans to allow individuals to view all their pension information online in one place.
The Pensions Dashboards Programme is to be “reset” as additional time is now required to produce the technical architecture that would enable the connection of pension providers and schemes, according to the Department for Work and Pensions.
Complex build
In a written statement, the pensions minister Laura Trott said: “More time is needed to deliver this complex build, and for the pensions industry to help facilitate the successful connection of a wide range of different IT systems to the dashboards digital architecture.”
She said: “Given these delays, I have initiated a reset of the Pensions Dashboards Programme in which DWP will play a full role.” She added that a new chair of the programme board would develop a new delivery plan and that she would give an update to the House of Commons before it broke for the summer recess.
She insisted that the framework set out in the regulations for pensions dashboards remained fit for purpose and that the government also remained committed to the delivery of the pensions dashboards that would be a “vital tool” to help people plan for their retirement.
Waiting game
The compulsory onboarding of pension scheme information was due to start in August, a launch date which itself had been put back from April. The first group of schemes to be included covered pension schemes with more than 1,000 members who are not yet retired (measured at the scheme year-end falling between 1 April 2020 and 31 March 2021). Such schemes will be mostly master trusts and pension providers offering personal pensions.
At the time, the pensions industry broadly welcomed the introduction of the Pensions Dashboards Regulation 2022 that set out the deadlines for connections. Pension trustees and administrators have been carrying out programmes of their own to ensure that membership data was entirely up-to-date and correct in order to be able to be uploaded for access via the dashboard.
MHM’s opinion
The dashboard programme is clearly a major piece of work that is as much about the technology supporting it as it is about pensions.
Being able to access information about all of your pensions in one place would be a huge benefit to millions of pension savers, but only if the service is accurate and reliable. Therefore, it seems like a good decision to delay the launch until the technology is fully tested and declared fit for purpose.
If you would like to discuss options to review and improve your workplace pension scheme, do not hesitate to contact us on 01423 229029 or email paul.wilson@mhmtrustees.co.uk.