Heywood Pension Tech
Time is running out for pension scheme administrators who have yet to start preparing for pensions dashboards. If you find yourself in this group, it is crucial that you begin the preparation process now. Ensuring you have a solid strategy in place for enhancing and refining your member data, along with a clear plan for connecting to the dashboard ecosystem is a vital first step.
Pensions dashboards, when live, will connect members with pension pots, and in theory, any ‘lost’ pensions they may have from previous employments. That’s the theory anyway. Dashboards simply won’t work as intended if pensions schemes don’t have their member data in order. Not only that, but failure to comply with the connection deadline, could lead to serious consequences.
What will happen if you don’t meet the pensions dashboards connection deadline?
Failure to meet the pensions dashboards connection deadline of 31 October 2026 could lead to your scheme falling foul of its regulatory obligations.
The message at this stage is clear; don’t take any risks.
The warnings are there, and the repercussions are real. Missing the 31 October 2026 connection deadline could bring potential fines of up to £50,000 from the Pensions Regulator.
A fine of up to £50,000 is not just a slap on the wrist - it's a significant financial blow that can impact your finances as well as your reputation. But the potential impact doesn't stop there. Repeat offenders could face legal action, further tarnishing your image and eroding trust among members.
The connection deadline should be viewed as a hard backstop. Prior to the deadline, the Department of Work and Pensions (DWP) is expected to lay out expected connection dates for schemes in the next few months, with the expectation that schemes will follow this guidance and even aim to connect earlier if possible, to smooth out the connection process.
More than likely you’ll face operational obstacles too.
Delays in connecting will have a direct impact on members accessing their pension information.
The pensions dashboards will bring members and their pensions together, so it’s not hard to imagine frustrations rising when information cannot be found. Chances are, it will be your frontline administration team who will be the ones having to deal with an influx of enquiries from disgruntled members too – a potentially costly consequence and a poor member experience.
What you need to do now to prepare for pensions dashboards
Revised staging dates are expected to be announced this spring, so if you haven’t started to prepare, it’s still not too late, but you’re cutting it fine. The longer you wait, the more likely it is that you’ll face a capacity crunch as scheme’s battle to meet the deadline.
Here's what you can do now:
- Prioritise data accuracy - Ensure your member and value data is complete, consistent, and up to date, and create your plan to keep data accurate on an ongoing basis. Once connected to dashboard, you are always connected 24/7
We can help you get started. We’ve helped 68 pension schemes review their data already. Get started with our free dashboards readiness reports. - Decide how you’re going to connect to pensions dashboards – You’ll need an ISP that will give you the confidence that once you’re connected, you stay connected.
Read about what it means to couple with a good ISP and how it can help pension schemes get in shape to safely arrive, prepared, for pensions dashboards. - Speak to the experts – Still not sure about your next steps? Our experts are here to help guide you on your pensions dashboards journey and deliver anything you need, in one place.
Remember, connecting to pensions dashboards isn't just about ticking a regulatory box; it's about empowering your members with their financial future in their hands. Don't get left behind - make the choice to prioritise their needs and embrace the future of open pensions. Most importantly, do not get left behind by acting too late.
