The pensions dashboard could cost pension schemes millions of pounds to prepare data and build.
What is the pension dashboard?
Is it the aggregation of all your pension schemes information and projections into one place so that you can view, plan, project and understand any pension income shortfalls and what actions you may wish to take in one place. The complexity is that there are thousands of different type of pension schemes that we need to draw information from and for them to make available the data to build a dashboard.
Sir Steve Webb Lane Clark & Peacock partner and former pensions minister, is asking the Government to explain what is involved and if the dashboard is simply a cut-and-paste from existing statements then the information on display will be inconsistent between different pensions.
LCP found figures for 2 defined benefit pensions for the same member along side each other but calculated on different definitions and the government could require schemes to provide data against new and standardised definitions.
Steve Webb LCP said, “Non-standard cases like savers with transfers in, people working past pension age and pension sharing on divorce may still be complicated even if the data is clearly administered all these require manual calculations”.
Data will need to be skilfully handled to be compatible for the dashboard which could result in huge costs.
The Pensions Dashboard Programme (PDP) after consulting more with the industry will publish further thoughts on data standards later this year.
Regulations will then be published by the Department for Work and Pensions (DWP) once the Pensions Schemes Bill has passed through the House of Commons.
Guess who owns 'pensiondashboard.com' and 'pensionsdashboard.com'? Yep, you know we are forward thinking.