Following the Pensions Dashboard regulations coming into force on 12 December and with the first staging dates now less than 9 months away, LCP has urged pension schemes to get prepared.

LCP suggested that pension schemes need to undertake specific actions to make sure that they are dashboard ready, namely pinning down a staging date, doing the right due diligence, and getting the connection right.

“The first thing to do is pin down a staging date”, LCP advised, stating that this process should be started by working out the number of “relevant members” the scheme has due to the varied connection deadline for schemes of varied sizes.

Commenting on doing the right due diligence, LCP stated that there are many layers that need to be completed to ensure the scheme is dashboard ready, such as understanding whether the scheme is able to build their own connection of if they would need third party support.

LCP also pointed to other factors that needed to be considered when understanding a scheme's staging date such as if members are in a defined contribution (DC) section and if a DC scheme is used for auto enrolment as both effect how late or early a scheme's staging date is.

LCP additionally stated that it is "very important" that scheme’s have accurate data, make sure they are on top of all the government requirements, and ensure trustees have matching criteria that is broad enough to match genuine members.

On the topic of getting the connection right, LCP advised that, where employers have legally separate schemes that have a strong correlation in membership, it would make sense to discuss with the scheme trustees whether to consider staging them together since doing so may make for a "more efficient connection process".

To achieve this, LCP stated that there is a 12-month window to make an application to a programme that would transfer scheme data to a new administrator and schemes wanting to take advantage of the programme should make this application as soon as possible.

LCP consultant, Ella Holloway, commented: “With the regulations now in force it’s really important that pension schemes take action in the new year to avoid a last-minute mad dash to get pension dashboard ready.

“There is a tsunami of regulation for trustees and schemes to contend with and navigate, not least the implications from the new funding code with the latest consultation now published.

“However, the regulatory dates for dashboards will not be changing so this can’t be moved to the bottom of the priority list.”

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