TPR starts checks on DB value data for dashboards
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The Pensions Regulator has started a regulatory initiative targeting defined benefit and hybrid schemes to check how well prepared their data are for connecting to dashboards.
TPR is urging schemes to act now, stressing that the connection deadline for about 2,600 schemes is on 31 October this year, when they will need to provide members with accurate information within set legislative timescales.
A newly launched regulatory initiative seeks to ensure DB and hybrid schemes – which have to return data based on actuarial calculations – are ready, targeting 240 private sector schemes.
TPR has said it will put particular focus on the readiness and accuracy of value data and feed this into discussions on the timing of the long-awaited launch of the MoneyHelper dashboard.
The regulator previously found that while dashboards preparations were well underway, readiness lagged on value data. “Unlike DC and some public service schemes, DB and hybrid schemes do not have existing obligations to issue annual benefit statements, meaning their value data is more likely to be out of date,” TPR noted.
Schemes must ensure that the values of members’ pensions dates from the past 12-13 months, values are accurate, and that they are returned within the legal timescales. This means that where a value was calculated recently, it must be returned within a few seconds, and if it is out of date, schemes must calculate the value and return it within three days for DC pensions or within 10 days in all other cases.
“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,” said executive director of market oversight Ben Gunnee.
“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,” he added.
