Round-up of recent developments in UK pensions.
TPR publishes final Pensions Dashboards Compliance and Enforcement Policy
Geraldine Brassett, Nick Savage, Kirsty Cotton | September 20, 2024
On 5 September 2024 the Pensions Regulator (TPR) published their Pensions Dashboards Compliance and Enforcement Policy. The policy outlines a number of scenarios which illustrate how TPR's approach might work in practice. TPR states:
'Our compliance and enforcement policy should not be seen simply as a regulatory stick. This policy demonstrates that our approach is risk-based and proportionate but is clear on the potential penalties for non-compliance'.
Alongside the final policy, TPR published the consultation response, issued a blog "Act now on pensions dashboards so we don't have to" and updated its Breach of Law guidance with specific dashboards examples.
WTW comment
TPR's message was very clear in the headline of the blog that accompanied the publication of the Policy 'Act now on pensions dashboards so we don't have to'. Our pensions briefing article "Bringing Pensions Dashboards into view" outlines the actions trustees need to take before their staging date.
As expected much of TPR's focus over the coming months is the extent to which Trustees are reviewing and, where necessary, improving the quality of their data. The blog states that TPR will:
'be engaging with hundreds of schemes this autumn, asking them to account for how they are measuring and improving their data. We may take regulatory action where trustees or scheme managers are failing to meet our expectations'.
Trustees need to make informed decisions about the need for data cleanse and engage with administrators to schedule this work. Data is relevant for matching and because it will drive the contextual data that members will see on dashboards. Contextual data is designed to help members better understand their pensions and will require decisions around the calculation strategy and, where appropriate, any data related activity needed for Additional Voluntary Contributions (AVCs).
We welcome the helpful examples in the policy. These illustrate scenarios of compliance and non-compliance and are in line with our expectations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
