Pensions dashboards: five actions LGPS funds should take now

Pensions dashboards are moving from concept to reality, and expectations on schemes are increasing as a result. The Pensions Regulator’s (TPR's) latest readiness report offers a useful snapshot of where the market stands, and what schemes still need to do. For Local Government Pension Scheme (LGPS) funds, it highlights some clear priorities to focus on now.

1. Gather member data monthly - Most funds are well down the path of enrolling employers into a data-sharing portal which allows for the monthly collection of data. But the journey isn’t complete. Gathering monthly maximises the opportunity to effectively review data quality, and ensure calculations can be performed in a timely manner.

2. Think about "Value Data" - For some time, the conversation has been around connecting to the ecosystem and deciding on Matching Criteria. That’s still important, but October is not far away and funds need to be confident they can respond effectively to Dashboard enquiries. That means making sure data quality is good enough to carry out all the necessary calculations. The LGPS has a bit of an advantage since it already produces Annual Benefit Statements each year for both active and deferred members. However, if fund records are incomplete, it may not be possible for 100% to be issued on time. This is an example of where a Data Improvement Plan is of vital importance.

3. Engage with AVC providers - Where a scheme offers additional voluntary contributions (AVCs), as all LGPS funds must, the data needed to respond fully to a dashboard enquiry is often held across two or more providers. Funds need agreements in place to make sure members receive all the information they are entitled to.

4. Involve the members - Member portals are used across the LGPS, with plenty of funds seeking to upgrade how they use them. This is a great opportunity for members to help check the data funds hold about them, especially the items such as their name, address etc. Funds should use every avenue they have to make sure the data they hold is correct before Pension Dashboards go live.

5. Learn from testing - The major software providers have all been involved with testing the ecosystem. Funds can tap into this knowledge to clarify what challenges they may face (and how to mitigate the risks). This includes checking whether matching policies are fit for purpose and identifying any technical challenges that need to be addressed.

There’s no getting away from the fact this is a busy time for the LGPS. But with change fast becoming the only constant, funds and their officers, will need to adapt and be ready when the Pension Dashboards are live for public use. If your fund needs help getting ready, or you would like some support with your plans and policies, please get in touch. 

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