Pension scheme trustees will soon know what information they are expected to provide for the pension dashboard as the Pensions Administration Standards Association (PASA) is working on a guide.
Margaret Snowdon, the association's chairman, told FTAdviser the standards body is working closely with the Department for Work & Pensions (DWP) on this document, which is expected to be published alongside the government feasibility study on the pension dashboard in April.
The plan behind the pension dashboard, which is due to be launched in 2019, is to create the technology to enable savers to see all of their retirement pots in one place at the same time, giving them a greater awareness of their assets and how to plan for their retirement.
The DWP took over responsibility for the pension dashboard in October, after criticism about HM Treasury's handling of the policy.
The association's guide for trustees will include the format in which trustees much give information on the member, and also how schemes will present the values of the pension pot of each individual.
Ms Snowdon said: "The value of the pension will be an estimate, without being a promise or a guarantee. The goal is for the individual to get an idea of their savings gap."
One of the aspects that is currently being discussed is if pension schemes will need to give the value of the pension at the time of retirement, or if they can just input the current figures, which would then be recalculated automatically, she added.
She said: "If schemes don't need to recalculate the figures themselves, there is no excuse [not to provide the data for the dashboard]."
A DWP spokesperson said: “We are working with PASA and a range of other stakeholders as part of our feasibility work on the pensions dashboard. We are aware that PASA have been developing guidance for scheme managers on this subject, originally based on recommendations made by the industry-led pensions dashboard project.
"However, we have since agreed that further work is needed to develop the policy in detail before guidance can be published. We expect this work would take place post-feasibility and involve DWP, PASA and other stakeholders, subject to the report’s conclusions.”
Ms Snowdon argued the pension dashboard is a great opportunity for schemes to clean up their data, and is asking HM Treasury for VAT relief on this matter.
She said: "I have asked for VAT relief for pension schemes cleaning up their data for the pension dashboard, for a limited time – starting this year until 2021.
"The Treasury would collect these taxes from corporate tax from the companies which would conduct this data clean up; but they have said that this would be quite complicated."
While the dashboard is an industry initiative, the government has said it will legislate on it if it is "appropriate and necessary" to bring pension schemes and providers on board.
Ms Snowdon added: "The government should put their hand in their pocket."
In December, the DWP conducted several workshops about the dashboard, where industry experts said the project should be phased-in and be accessible first-hand to people at retirement.
National advice firm LEBC has calculated that opening up access to financial advisers to the dashboard will cut the cost of advice by up to £400.
maria.espadinha@ft.com
