The Pensions Administration Standards Association (PASA) has backed plans to introduce an “statement season” for auto-enrolment pension savings.
The body had set up a benefits statements working group to look at these government proposals. Publishing its first report on this issue it said it supported the concept, but there needed to be careful consideration of a number of issues, including whether there was a common valuation date and potential technological implications, particularly in relation to the pensions dashboard.
PASA Board Director, Girish Menezes, says: “Consistent messaging around pension savings is imperative and the introduction of a statement season could be a really useful way of engaging and capturing people’s interest. Most will end up with several pension pots over their working life. Having access to core information across all these pots, at the same time each year, would allow them to compare their arrangements and take a holistic view – empowering them to make better informed saving and retirement choices.
“As with most things, there will be some resource and cost challenges involved with trying to achieve this in a streamlined and synchronised fashion, we have considered these in our paper to come to some sensible conclusions.”
Helen Ball, Chair of the PASA Benefit Statements Working Group and Partner at Sackers, adds: “We support the concept of a statement season and believe the potential benefits are clear. However, the idea of common publication and valuation dates need careful consideration.
“A common valuation date would be unnecessarily cumbersome and not deliver much in the way of ultimate benefit. It’s important for a statement season to work alongside technological enhancements, such as dashboards, to ensure longevity. Access solutions – such as web, post, email – also need careful review. Ultimately, if all of the information is available online throughout the year, the requirement of a statement season naturally falls away over time and any related legislation should take this into account at the outset.”