How to bring the pension industry on board with the Pensions Dashboard
Anthony Rafferty, Managing Director of Origo, looks at the issues around bringing pension providers on board with the Pensions Dashboard.
One of the key issues highlighted in discussions around the Pensions Dashboard is its value to consumers and the industry if the whole of the pensions market is not on the Dashboard from day one.
Compulsion of market participants has been raised and merits debated in various press articles. Currently, we understand that the DWP is likely to legislate compulsion at a future date to ensure full coverage of providers/administrators supplying data to the Pensions Dashboard. Onboarding of providers/administrators (by market share) will help to rapidly increase industry coverage and encourage use amongst consumers. Until compulsion is enacted, peer pressure and market advantage will be significant incentives to help drive the Dashboard forward. There is already a coalition of the willing actively planning and preparing resources and systems for the advent of the Pensions Dashboard.
For other administrators/providers, there is perhaps, some doubt as to what could be expected of them in terms of the development work required to be undertaken in order to participate in the Pensions Dashboard.
Administrator/ provider systems will need to:
- cope with the large volume of data requests
- accurately match verified user identities to source system records
- adopt the agreed data standards
- cleanse data to provide accurate data in response to Find and Value requests.
We have been involved with the Dashboard initiative since the outset. We have worked collaboratively with a number of bodies and providers since 2014 – participating in various industry project groups (OIX, ABI and DWP) as well as delivering a Pensions Dashboard prototype. The Pensions Dashboard Project Working Group, which we formed in 2016, continues to help establish the scope and challenges of the project for providers.
On behalf of the industry, we have also researched the potential scale considerations to be dealt with by systems to help ensure that the systems architecture for Dashboard and administrators/providers are capable. Our research estimated an anticipated consumer user population of 15 million people with approximately 300 pensions providers and Scheme Administrators – you can read about it here.
While the Work and Pensions Select Committee proposed a single, publicly hosted Pensions Dashboard, covering state, defined contribution and defined benefit pensions - there is also a potential for multiple dashboards, at some point in the future.
Population and industry scale combined with desire for the Pensions Dashboard to be the trusted go-to resource Government intends, means that there will be a significant increase in the volume of data requests that must be considered and handled by the Industry.
We believe consumers and the industry can both significantly benefit from the implementation of the Pensions Dashboard. With the backing of the DWP, key administrators/providers and FinTech experts involved in the developments and discussions, the industry has the positive impetus to deliver a successful Pensions Dashboard for our UK consumers.