The Pensions Administration Standards Association (PASA), has released guidance on how to set up a pensions dashboard aimed at UK pension schemes, trustees and providers in readiness for the 2023 rollout
The pensions dashboards are designed to give pension savers a clear view of all their pension savings in one place, particularly important since the creation of the auto enrolment pension system, which means some savers have numerous small pension pots with different providers.
The recent Pension Schemes Act sets out requirements for pension providers to set up a pension dashboard scheme which need to be available for the public by 2023. It is expected that savers would be able to sign up to schemes from 2022 on a voluntary basis.
When an individual logs on to a pensions dashboard, the dashboards ‘ecosystem’ will send a digital ‘find request’ to all pension providers, enabling each provider to ascertain if they have a pension for the individual.
As well as basic (non-monetary) information about the pension (such as the pension type, contact details, etc.) the provider must communicate the pension amount. There is also ongoing work to set up a system to provide an estimated retirement income (ERI) for each pension.
Chris Connelly, chair of the PASA Dashboard Working Group said: ‘The main message with this guidance is a very clear one. You should start preparing now. Pensions dashboards have been on the horizon for some time, but now the Pension Schemes Act 2021 has received Royal Assent we can expect The Department for Work and Pensions (DWP) to consult on detailed dashboards regulations and Regulators to begin supporting pension providers and schemes comply with their dashboards compulsion duties.
‘We would also expect the Pensions Dashboards Programme (PDP), to publish further detailed instructions on how you must operate with the dashboards ecosystem. But you don’t need to wait for all of this before you make a start. This guidance aims to explain what schemes and providers should be doing now to incorporate the requirements for dashboards.’
‘Almost every aspect of managing a pension scheme is easier to achieve if you actively manage data. A good strategy will incorporate both ongoing and one-off scheme-specific data activities. We will also shortly issue guidance on Data Management Plans, which all pension schemes should be looking to develop and implement to manage their data strategy.
‘Pensions dashboards, if done well, could be a game changer in getting people to engage with their pensions, and a better efficiency of pension scheme management. As an organisation PASA wants to play its role in ensuring the industry is as supported as possible in getting things ready and compliant.’
PASA guidance, How to get ready for pensions dashboards