The pivotal plan to introduce pensions dashboards that will allow individuals to see their pensions information, including their state pension, in one place online has moved up a gear after the government issued new guidance setting out details of a staged timetable for the connection of a range of scheme types.
The timetable gives priority to schemes and providers with the greatest number of members in order to ensure a sufficiently high level of pensions memberships are available to find and view as early as possible “in turn enabling the launch of pensions dashboards for use by the public at the earliest possible point”, according to the Department for Work and Pensions (DWP).
Deadlines
According to the DWP “all schemes and providers in scope are legally required to be connected to the pensions dashboards ecosystem and be ready to respond to requests for pensions information by 31 October 2026 at the latest”. The connect-by date is calculated based on the number of relevant members at the scheme year-end between 1 April 2023 and 31 March 2024.
The deadline for the first tranche of connections is 30 April 2025. This date is for master trust schemes of 20,000 members or more that provide money purchase benefits only, and for FCA-regulated operators of personal pension schemes, stakeholder pensions and similar individual contracts with 5,000 members or more.
Planning
The DWP said being able to access information easily online about pensions, including lost or forgotten schemes, for free alongside an increase in members’ awareness and understanding of their pension information could support better planning for retirement.
In the meantime, the Pensions Regulator (TPR) has produced a tool to help calculate the connect-by date and is urging pension scheme trustees and managers to not only read the DWP guidance but also plan for connection by downloading the TPR checklist. It is also reminding trustees to check nominated contacts to ensure further updates are received by the most appropriate people.
MHM’s View
As we have long stated, the pensions dashboards project is a huge undertaking and is all about the technology that will be required to work glitch-free behind the user interface, enabling accurate information to be made readily available to scheme members.
However, while it may be all about the technology on one level, it is all about people on another. Pensions managers and trustees are being required to ensure they carry out requirements to connect as instructed and, as set deadlines approach, so the pressure builds.
Although this is largely a matter for administrators and third-party advisers, trustees and scheme sponsors need to be confident that progress is being made for their scheme to be dashboard-ready by the appropriate date. As always, we are happy to discuss any matters that may be of interest or concern, so please do not hesitate to get in touch with us at info@sandccarsalesharrogate.co.uk or by phone: 01423 229029
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