Pensions minister Guy Opperman has rebuffed concerns over the timescale of the Pensions Dashboards Programme, adding that the project would have moved at even greater speed if he had his way.
Large schemes will be the first of three staging cohorts for the dashboards, connecting to the necessary digital architecture between April 2023 and September 2024.
They will then be followed by medium schemes throughout October 2024 to October 2025, with small and micro schemes expected to connect from 2026.
There will also be a 90-day period between the point at which the dashboards will be available to the public — known as the “dashboards available point” — and their announcement.
Accusations by either side will do little to promote a successful outcome, and all parties should remember whose interests this project will ultimately serve
Tim Middleton, PMI
This window has caused concerns in parts of the pensions industry, with Association of Consulting Actuaries pensions committee chair Peter Williams suggesting that at least a nine-month period would be required.
Speaking to a Lang Cat podcast aired on August 30, Opperman said: “I have zero, zero sympathy for those firms who have failed to do what they should do already, which is have their data in order for their members.
“We have given them a lot of time. If I had my way we’d have gone a lot, lot quicker.
“I’m not underestimating the massive task that is getting all of this up and running, and various things have complicated it from McCloud downwards,” he added
Tim Middleton, director of policy and external affairs at the Pensions Management Institute, said “it is vital that government and the pensions industry continue to work together in a spirit of co-operation and mutual respect” in order to bring the dashboards project to a successful conclusion.
“Accusations by either side will do little to promote a successful outcome, and all parties should remember whose interests this project will ultimately serve,” he said.
Deadlines will not change
The existence of small pension pots have been considered a challenge to master trusts and the success of auto-enrolment. Opperman argued that tackling the issues surrounding small pots would become easier with the availability of pensions dashboard data.
“That saves industry a huge amount of money. Everything flows from them getting their house in order,” he said.
The minister claimed that large providers told him at least three years ago that they would not spend money on the initiative until the relevant act had been passed. He also said he was told that boards would not regard dashboards as “core business”.
“I have zero sympathy with those organisations who have decided to spend money on something that they think is important, when government has passed laws, approved by the entirety of the House of Commons and the entirety of the House of Lords, that is in the consumers’ interests — and, by the way, the industry’s interests — and they, as a board, have chosen to spend money on other stuff that they consider sexy and fun, or maybe important as well,” he said.
“I have had that conversation with really big providers and I am utterly unsympathetic to arguments for delay.”
LCP partner Aiden Coloe said: “This is just further evidence that the deadlines for dashboards implementation will not change.”
Clarity on regulations required
In August, respondents to the government’s pensions dashboards standards consultation said that these standards would require user testing and experience before the standards can be fully assessed.
Respondents to Opperman’s podcast remarks sought to highlight the technical complexities of the dashboards project.
“To the extent that there may be schemes that have avoided engaging with this matter, we agree that there can be little sympathy,” said Paul McGlone, dashboards lead at the Society of Pension Professionals.
He observed, however, that a number of schemes and providers “for complex legacy reasons will not be able to get all of their members live at the outset” of the initiative.
“The other area of concern is the announcement of the dashboards’ availability point, which is currently proposed as three months. The industry is rightly saying that more notice is needed of that final date,” he continued.
“That’s not an argument about delaying, it’s about confirming the launch date so that schemes and providers can have all of the necessary resources in place at launch to ensure it goes smoothly.”
Richard Smith, a member of the Pensions Administration Standards Association’s pensions dashboards working group, noted that workplace pension schemes do not control the accuracy of the personal data they hold, and that these are controlled by employers and deferred members.
“Schemes work hard to check and maintain personal data accuracy. But if a deferred member who left 30 years ago marries and moves house, but fails to notify their pension schemes, there are limits to what schemes can do,” he said.
“Commentators outside of the pensions admin world aren’t always fully aware of the reality of these challenges.”
Pensions dashboards standards need ‘extensive user testing’
Respondents to the pensions dashboards standards consultation have warned that user testing and experience will be required before a full assessment can be provided.
Other concerns lay with a lack of clarity over the regulations and standards that will govern the dashboards programme.
“While there may be data challenges in certain parts of the market, our concern is more around the fact that we don’t have final [Department for Work and Pensions] regulations, [Financial Conduct Authority] rules, or the PDP standards which might not be published until November,” said Aegon head of pensions Kate Smith.
“That’s only a matter of months before the first cohort of schemes and providers, including Aegon, have to start connecting to dashboards. Having these gives certainty about the intricacies of the rules, where currently there is a risk that these might change.”
