Pensions dashboards delay is the right decision, says industry
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Pensions minister Laura Trott has “initiated a reset of the Pensions Dashboards Programme”, saying more time is needed to deliver the project that was due to see the first schemes connect by the end of August.
The pensions minister said on Thursday that “more time is needed to deliver this complex build, and for the pensions industry to help facilitate the successful connection of a wide range of different IT systems to the dashboards digital architecture”.
She added: “Given these delays, I have initiated a reset of the Pensions Dashboards Programme in which DWP will play a full role. The new Chair of the Programme Board will develop a new plan for delivery.”
Legislation with new timings will be made “at the earliest opportunity”, the minister said.
Trott promised to give a further update to the House of Commons before summer recess, which will start on 20 July.
Large defined contribution master trusts were due to connect to the dashboards architecture by 31 August 2023, a deadline that had already been pushed back.
The PDP said it is working with the Department for Work and Pensions “to establish a new and achievable plan for delivery”.
Its principal Chris Curry said that significant progress has already been made on dashboards. “However, we need to do more work to ensure the connection journey is stable and secure for industry, and that it’s achievable ahead of mandatory connection,” he added.
Curry noted that the PDP will continue to work closely with industry.
Caroline Siarkiewicz, the chief executive of the Money and Pensions Service that the PDP is part of, said: “Today’s announcement affords us the opportunity to replan the work of PDP, collaborating closely with industry partners on the way forward."
Pension schemes benefit from more time
Industry has been expressing concerns about getting schemes ready for connection, said Kim Gubler, chair of the Pensions Administration Standards Association.
“A delay in the connection timetable buys some welcome contingency to achieve this,” she said, but she nonetheless advised pension trustees to aim to be ready by the staging date set in the current legislation, using the delay as contingency if needed.
The vast majority of the work for schemes does not relate to connecting to the dashboards, she pointed out, but to data cleansing and improving administration processes for quicker benefits calculation.
The Pensions and Lifetime Savings Association said the delay by several months, though disappointing, was the right decision.
“We welcome the government’s promise to ensure that, once the current issues with the central digital architecture are resolved, the industry will be given adequate time and technical information to play its part in this endeavour,” said Nigel Peaple, director of policy and advocacy.
“The government is wise to prioritise doing the job well rather than doing it in a rush, which would result in a bad outcome for the pension industry and savers,” he added.
The Association of British Insurers, which represents providers of contract-based schemes, had a similar view.
“We are pleased that government remains thoroughly committed to the delivery of pensions dashboards but agree that a reset is appropriate to work through the complex technical solutions and challenges,” said Yvonne Braun, director of policy, long-term savings, health and protection.
“While having to delay such an important programme is always disappointing, we remain strong advocates for the project to progress as quickly as it safely can.”
Will the delay change your dashboard connection plans?
