Pensions dashboard countdown begins
In March of this year, the Department for Work and Pensions (DWP) announced the timetable for pension schemes to connect to the dashboard ecosystem. Staging will take place from 30 April 2025 to 30 September 2026 and the largest schemes will be first to start user testing.
However, a recent survey from pension law firm Sacker & Partners notes that concerns among pension schemes centre on the ‘matching’ process that will match pension scheme members with their pension. According to the survey, 26% of pension schemes are ‘worried’ about ensuring the data matching process runs smoothly. A 25% proportion of schemes are concerned about the accuracy of defined benefit (DB) value data. This marks a shift from the 2022 survey, when 40% of respondents expressed concerns over accurate DB value reporting and only 19% had concerns over data matching.
Data quality questions
It is not surprising that as schemes begin to grapple with the complexities of data matching ahead of connection next year, worries over data quality have overtaken DB value data as the primary concern. Those worries are exacerbated because there is no recommended set of matching criteria. Instead, trustees are expected to determine their own policies and selecting the data fields used for matching purposes. Decisions must be tailored to each scheme's specific needs and trustees must fully understand the reliability of their data to make informed decisions about accurate matching.
What can schemes do to be better prepared?
With schemes potentially receiving millions of 'find requests' in the first few months after launch, trustees will need to consider improving data quality and thoroughly understanding matching decisions as a top priority in all dashboard projects. Trustees should consider establishing a governance framework that ensures they are well-prepared for dashboard connection and those early months. Alongside the governance framework, trustees should document all decisions made relating to the data matching process, including maintaining a clear audit trail.
Schemes might also benefit from forming a specialist working group to handle the heaviest data tasks, including data cleansing and establishing matching criteria. There are other key background elements to consider too, such as updating privacy notices to reflect dashboard use, conducting data protection impact assessments and reviewing cyber security policies, areas often overlooked in large-scale projects.
Get prepared with the support of an expert partner
With the right support and knowledge, preparation doesn’t need to feel overwhelming or onerous, we can break it down step by step. EQ believes the best approach to becoming dashboard ready is to engage collaboratively now to meet the requirements in good time.