Pensions minister delays dashboards and resets plan

In an update on March 2, Trott said that more time would be needed to make sure the dashboards comply with the latest regulatory rules and guidance set out in 2022.

She said: “Additional time is required to deliver the complex technical solution to enable the connection of pension providers and schemes, in accordance with the connection deadlines set out in the Pensions Dashboards Regulations 2022 and the Financial Conduct Authority’s corresponding pensions dashboard rules for pension providers.

“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.”

The lack of a firm, new timetable will leave industry in limbo and this uncertainty must be resolved as soon as possible

Sir Steve Webb, LCP

Trott added: “Given these delays, I have initiated a reset of the PDP, in which [the Department for Work and Pensions] will play a full role. The new chair of the programme board will develop a new plan for delivery.”

The move further delays the dashboards project, which had originally been scheduled for a go-live in 2019.

In November last year, the FCA said that regulated pension providers would have an extra two months to comply with its pensions dashboard rules. At the time, the watchdog said providers would have until August 31 2023 for implementation, to align with the government’s extension to a deadline on occupational pension schemes.

The dashboards idea was introduced to allow individuals to view information about their pensions, including state pension, in one place online and put savers in control. It will help reconnect individuals with their lost pension pots, such as where a pension scheme has lost contact with a member – transforming how consumers think and plan for their retirement.

Trott said the project is a “significant undertaking”, requiring the development of new technology that will permit individuals to find their pensions by searching thousands of pension schemes, which collectively hold millions of pension records.

Fit for purpose

Currently, under the supervision of the Money and Pensions Service, the PDP is responsible for delivering the digital architecture that underpins the dashboards.

Trott explained that the framework set out in the regulations for pensions dashboards remains fit for purpose, and argued that the DWP will legislate to amend the timing of these obligations to provide clarity to schemes.

“We will ensure the pensions industry has adequate time and the necessary technical information to prepare for any revised connection deadlines. I will provide a further update to the house before summer recess,” she said. 

Trott added that the dashboards will be a “vital tool” to help savers plan for their retirement and that the government remains thoroughly committed to their delivery.

“I know this commitment is shared across the pensions industry,” she said. “The huge consumer benefits of pensions dashboards are yet to be realised, but it is vital that the foundation upon which the dashboards ecosystem is built is safe, secure and works for both the pensions industry users connecting to it and the end users of the service.

“While there are issues to work through, we must not lose sight of these benefits. It is essential that scheme preparation for pensions dashboards continues, and we will press ahead to deliver this technology.”

Dashboards delay must be kept to a minimum

Trott did not announce a date for the dashboards launch, and some industry members have doubts about whether the project can be delivered before the next election or even at all. LCP partner and former pensions minister Sir Steve Webb said this latest delay in the rollout of pensions dashboards to the public is “deeply frustrating”.

“The end goal of a website where people can see all of their pensions in one place would be of huge value to pension savers,” he said.

“It will help people to find pension pots they have lost track of, and will enable them to rationalise and make best use of the pots that they do have. 

“The government must ensure that any delay is kept to an absolute minimum. The lack of a firm, new timetable will leave industry in limbo and this uncertainty must be resolved as soon as possible.”

AJ Bell head of policy development Rachel Vahey said that the previous timetable setting has been scrapped, and the public and industry are now “left rudderless, with no idea of the current state of play”.

She continued: “The DWP has torn up the plans for pensions dashboards and has decided to start again.

We welcome the government’s promise to ensure that the industry will be given adequate time and technical information to play its part in this endeavour

Nigel Peaple, PLSA

"After years of work across the industry and multiple government bodies, this a staggering development and means dashboards are now at risk of being mothballed until the next parliament, and may never become a reality at all.

“For the industry this is frustrating, with countless hours of careful work put into developing dashboards. More importantly, this is a huge let down for consumers.”

Vahey said the dashboards had the potential to empower pension savers but they have been badly let down by a project that has overpromised and underdelivered.

Welcomed by some

However, Nigel Peaple, director of policy and advocacy at the Pensions and Lifetime Savings Association, welcomed the move by the government.

He said pensions dashboards have the potential to help everyone in the UK far better understand pensions by enabling them to see all their pensions — state pension, workplace pensions and private pensions — on line and in one place.

“But it is an enormous task involving a complex central architecture to be built by government, the connection of tens of thousands of pension schemes, and the identification of millions of people,” he said.

“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.

“Today’s announcement that the project will be delayed, apparently by several months, is disappointing but it is the right decision. 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 pensions industry and savers.”

This article originally appeared on FTAdviser.com