PENSIONS DASHBOARDS ARE YOU READY? 


Pensions dashboards are coming and ITM can help

The Government has confirmed that pensions dashboards will be introduced to the UK over the next few years. Dashboards have the potential to revolutionise how citizens engage with all their different pension entitlements.  

Every pension scheme and provider will need to put in place a technology solution to expose their members’ or customers’ data to dashboards. If you have data quality issues, you’ll need to undertake cleanse work so the pensions can be found.  

As the UK’s leading specialist pensions data management and systems solutions provider, ITM was a key partner in the 2017 prototype dashboard development and has remained central to the ongoing debate since then. As dashboards come to fruition, our insights below will keep you up-to-date with all the key issues, what you need to do, and how ITM can help.  




ITM's summary of the dashboards programme:

COMPULSION

The Government is going to make new primary legislation to compel all pension schemes and providers to expose their members’ or customers’ data to pensions dashboards. These new compulsion duties will apply to different schemes in stages, with the largest schemes expected to be required to comply first.

Find out more


ECOSYSTEM

The Money & Pensions Service (MAPS) is convening a delivery group to define in detail all the different elements of the overall ecosystem for pensions dashboards, including a Pension Finder Service (PFS), highly secure identity authentication services, and rules for how schemes "connect" to the ecosystem. 


STANDARDS

Regulators will ensure that schemes and providers make their data available to dashboards. Critical will be schemes' adherence to key data standards enabling pensions to be securely found and shown on dashboards. User testing is planned to understand consumers' needs so that industry can define these new data standards.


PREPARATION 

All pension schemes and providers will need to prepare carefully before exposing their members' or customers' data, on either a voluntarily basis or when compulsion applies to them. Data analysis and cleanse work already underway, or currently planned, will stand schemes in good stead, prior to their data being exposed to dashboards in the 2020s.


>COMPULSION

Government is legislating to require all schemes to expose their data to dashboards  

As soon as Parliamentary time allows, the Government is going to make new primary legislation to compel all pension schemes and providers to expose their members' or customers' data to pensions dashboards.

The new compulsion duties will apply to different schemes in stages, with the largest schemes expected to be in the earlier stages in order to maximise early participation. Large defined contribution (DC) schemes are expected to be among the first schemes. Early voluntary participation is also an option. The Government is also working towards including State Pension data in dashboards at the earliest possible opportunity.

The Government hopes to introduce a Pensions Bill later in 2019 including the dashboard compulsion provisions. This will become Pensions Act 2020. Secondary legislation (i.e. regulations), probably coming in 2021, will then define exactly what schemes must do, the date from which each scheme and provider will be required to comply, and whether or not any small schemes will be exempt from the compulsion requirements.

At ITM, we believe the compulsion "window" is therefore likely to start in 2022. Government expects schemes to be providing data to dashboards within four years of the first voluntary dashboard being launched in 2020. So we currently anticipate a circa two-year compulsion window from 2022 to 2024.

What’s next? The Government plans to introduce a Pensions Bill later in 2019 including compulsion provisions. ITM is actively contributing to the emerging thinking. Check back here regularly for a summary of the latest position and expert views on what it means for you.


>ECOSYSTEM

MAPS is convening a delivery group of experts to deliver the dashboards ecosystem

Behind dashboards, a whole "ecosystem" of different technology components must work together within a sophisticated digital architecture. The Money & Pensions Service (MAPS) is recruiting experts to form a delivery group to define, develop or procure all these components. 

ITM was a key partner in the 2017 dashboard prototype project, so we know that getting dashboards to work will require technical collaboration across the whole pensions industry. To lead this industry-wide collaboration, MAPS is recruiting a wide range of experts to form a dashboards delivery group. Chris Curry has now been appointed Principal (or Chair) and the Implementation Director of this delivery group is currently being recruited. The delivery group's many tasks include:

  • agreeing a roadmap, and then a detailed and costed plan, for the phased delivery over time of the dashboards digital architecture
  • defining, developing or procuring the critical Pension Finder Service (PFS) component, supported by highly secure identity authentication services
  • confirming throughout how consumers will be protected by their pensions information remaining secure at all times.

ITM is actively contributing to these discussions as MAPS establishes the delivery group.

What’s next? MAPS will announce the name of the delivery group Implementation Director. The aim is for the delivery group to be operational by the end of the summer of 2019. Check back here regularly for the latest updates and expert views on what it means for you.  


>STANDARDS

Regulators will monitor schemes' exposure of data and dashboards' protection of it 

Sitting beneath the dashboard compulsion legislation, there will be a set of detailed data standards which must be adopted so that pensions can be securely found and consistently shown on dashboards. Regulators will closely monitor adherance to these standards.

ITM's collaboration in the 2017 dashboard prototype project surfaced a range of important questions about the data that should be shown on dashboards. Starting in 2019, the MAPS delivery group (see ECOSYSTEM above) will commission user testing in a controlled environment to understand consumers' needs and agree what data should be shown.

Industry must then work closely with the delivery group and regulators to agree the necessary data standards so that the required data can be securely found and consistently shown on dashboards. It is likely that the inital data requirements will be small but grow over time. Similarly, dashboard functionality will start with a simple "find and show" service, but is expected to develop over time, with changes to the data standards as appropriate.

ITM has been at the heart of the detailed data discussions so far and will continue to work very closely alongside both industry colleagues and regulators as the data standards are agreed.  

What’s next? Industry-wide discussions on dashboard data standards are continuing and will have renewed impetus once the MAPS delivery group is operational in late summer 2019. Check back here regularly for a summary of the latest position and expert views on what it means for you.


>PREPARATION

Pensions schemes and providers can get ahead by attending to data quality issues now

Data quality analysis or cleanse work already underway, or planned, will stand schemes in good stead prior to dashboard compulsion. There'll also be an opportunity to participate early on a voluntary basis.

As the MAPS delivery group (see ECOSYSTEM above) undertakes user testing later in 2019 and into 2020, the dashboard data requirements on schemes will become clearer. But schemes don’t need to wait til then. All data quality analysis and cleanse work already underway, or planned, will enable schemes to get ahead and stand them in good stead for when compulsory dashboard participation takes effect in the early 2020s.  

Schemes are likely to rely heavily on their in-house or third-party pensions administration (TPA) functions in order to help them comply. They would do well to engage early with their TPA or administration software supplier to understand their plans for supporting their clients with dashboard compliance.  

The most proactive and forward-looking schemes and providers may not want to wait for compulsion. The MAPS delivery group is asking for schemes and providers to volunteer to join the dashboard ecosystem early, prior to compulsion applying. This will be a great chance to help influence the shape of the overall ecosystem, and the underlying data standards, for the eventual benefit of all UK citizens.  

What’s next? Continue with your existing data management programmes and engage with your TPA / software supplier to understand their plans. ITM already helps many clients with their pensions data issues. Contact us to find out more and keep checking back here for the latest dashboard news.

Data services overview –

ITM offers an end-to-end strategic solution. To find out how we can help your scheme, please download our overview.

DOWNLOAD

Contact us…

If you would like more information about our services, please contact us on:

t / 020 7648 9990

e / info@itmlimited.com

©2018 ITM LIMITED