The Pensions Regulator has launched a regulatory initiative targeting defined benefit and hybrid pension schemes to assess how they are preparing member data for pensions dashboards.
The move comes ahead of the planned launch of the MoneyHelper pensions dashboard.
The review will focus on whether schemes are ready to provide accurate and up-to-date pension values ahead of dashboard connection deadlines.
Around 2,600 schemes must connect to pensions dashboards by 31 October, with 75 per cent of member records already connected.
The new initiative will assess 240 private sector DB and hybrid schemes, with a particular focus on value data readiness and accuracy.
The regulator said previous interventions showed schemes were making good progress on member matching data, but preparations around value data remain less advanced, particularly for DB and hybrid schemes.
It said that schemes need to ensure that pension values are up to date, typically calculated within the last 12 to 13 months, and returned within strict timescales. It added that recently calculated values must be returned within seconds, while outdated figures must be recalculated and returned within three days for DC pensions or 10 days for all other schemes.
The regulator warned schemes that outdated or inaccurate pension values could lead members to make poor retirement decisions.
TPR executive director of market oversight Ben Gunnee says: “Data readiness goes beyond matching people to their pensions. Schemes need to be ready to return the correct values to members. If schemes do not prepare this information in advance, they risk overwhelming their administration teams and, more importantly, risk providing members with incorrect information.
“We will continue to support schemes through guidance, engagement and regulatory action where necessary to ensure dashboards deliver on their promise to help people plan confidently for retirement.”
Lumera commercial director: data & dashboards Maurice Titley says: says: “Pensions dashboards have the potential to be transformative for savers, but only if the data being returned is accurate, up to date and delivered quickly. For DB and hybrid schemes in particular, value data readiness is likely to be one of the biggest operational challenges given many schemes do not routinely refresh this information annually and can be operating on legacy technology systems.
“TPR’s intervention is therefore a timely reminder that schemes cannot afford to treat dashboards as purely a compliance exercise. Poor quality or outdated value data risks undermining member confidence at the very moment dashboards are designed to improve engagement with retirement planning.”
