The Pensions Dashboards Programme has cited the development of data standards as its priority, but it has postponed two consultations on data because of Covid-19.  

 

The PDP, operating under the Money and Pensions Service, has published a progress report on the dashboard programme. 

 

The group is yet to set out a timeline for the delivery of the dashboard. In the update, the PDP said it plans to “set out the shape of a more detailed programme timeline before the end of the year but inevitably uncertainty will remain”. 

 

Data standards are the priority in the next six months – these will set the bar for the data that pension funds and providers will have to submit to the dashboards, and the group has published two data documents – one on the breadth of coverage, the other on definitions and the depth of information needed. 

 

It will consult on these “at an appropriate moment in the future”. Principal of the programme Chris Curry said: “It had been our intention to publish two data-related Calls for Input alongside this update, but we have decided to defer that active engagement for the time being.” 

 

The definitions document is looking at data in terms of levels developed by the Pensions Administration Standards Association. 

 

Kate Smith, head of pensions at provider Aegon, said the update shows “just what a mammoth task this is, with so many moving parts”. The Covid-19 crisis has further added to the challenges, she noted. 

 

"The harsh reality is that the delivery challenges are enormous, and everything needs to be in place before pension dashboards can be implemented,” said Smith. 

 

But she said the current push to digital through Covid-19 could eventually work in favour of the dashboard. 

  

“It is possible that in response to the crisis, we’ll see accelerated progress in making more pensions digital, which will be helpful once the pension dashboard programme restarts engaging with the pension industry,” she remarked. 

 
Although digital, the pensions dashboard is not identical with open banking, stressed Anthony Rafferty, managing director of fintech organisation Origo - but admits open banking has been leading the way.

He said he was pleased to see that the differences between the dashboards project and open banking are recognised, "whilst acknowledging that that there is potential for collaboration on best practices and processes"

Rafferty also said it was positive that the PDP propose a flexible architecture to support deeper levels of data, for example contributions and investments at a future date.

 

Gary Cowler, partner at consulting firm Aon, said the documents provide “much-needed clarity about the likely next steps, including the type of data the project is aiming for”. 

 

For Cowler, the biggest challenge will be providing estimated retirement benefits at a current date for DB schemes.   

 

“This will be a crucial area of consideration as, although the data exists to calculate this for each member, most schemes do not hold their data in a way that could currently support this. It is also the case in many schemes that the concept of a single pension due from a single date is not sufficient to describe individual members’ benefits,” he noted, saying that to make that available for every DB member in a meaningful way would be a major exercise. 

 

Trustees, while on the whole supportive of the aims of the dashboard, are expected to balance its requirements with other challenges – apart from Covid-19, administrators are also still reconciling and equalising GMPs, argued Cowler. 

  

“It is therefore important that the industry debates whether a challenging project of providing estimated retirement benefits for all members of DB schemes is both a priority in the short-term and as phase one of the dashboard,” he said. 

 

Gary Cowler

Anthony Rafferty

Chris Curry

Margaret Snowdon