But with those deadlines drawing closer, The Pension Regulator (TPR) has issued a stark warning to schemes, urging them to digitise their data and ensure the data they feed into the pension dashboard ecosystem is of ‘sufficient quality’. But what does this mean exactly? In this article, we consider the TRP’s requirements for connecting to the Pensions Dashboard Ecosystem.
What is 'clean' pensions data?
The Financial Conduct Authority (FCA) and TPR already require pension providers and schemes to hold accurate data and pensions dashboards will be making greater use of it than ever before. Clean data is essential for ensuring that dashboard users receive reliable and easy-to-understand information about their pensions. Once a scheme is connected to the pensions dashboards ecosystem, users can request their pensions information anytime. So, it will be critical to regularly check and make sure all data is accurate and up-to-date. Maintaining clean data is also vital for those schemes considering derisking strategies, as poor quality data could be the decisive factor in whether a buy-in or buyout is successful.
What does the TPR expect from schemes?
In October last year, TPR started contacting pension schemes to urge them to improve their data quality in the run-up to the pensions dashboards connection and testing deadlines. Press reports quoted TPR as saying,
"Within the coming weeks we will begin engaging with a number of schemes that fall under the pensions dashboards scope, asking them to account for how they are monitoring and improving the quality of their member data. We will challenge those that are not able to demonstrate how they meet our expectations and regulatory action may be taken if necessary."
October also saw TPR publish its ‘Digital, Data and Technology Strategy’ as a guide for how schemes can and should be adjusting to the new technological environment. The strategy described a five-year plan for renewing its capabilities, with the aim of improving outcomes for customers and driving efficiency, automation and innovation. TPR is also asking the pensions industry to work with it to ‘foster innovation across the pensions sector, enable safe experimentation of new business models and pension technologies, improving market competition and value.’ Schemes therefore can expect to hear more from TPR on improving data quality throughout this year and beyond.
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Pension data management projects can be sensitive and highly complex, and data accuracy is vital. For over 187 years, EQ has been working with pension schemes, members, managers and trustees to deliver innovative retirement solutions. As a specialist data consultancy with technology at its core, we support clients to administer over 4.4 million pensioners and annuitants. If you want to work with a trusted pensions partner on sensitive and highly complex pension data projects that specialises in managing challenges at scale, get in touch.