Bravura Solutions Limited, a financial software solutions company, has published findings that the primary concern amongst pension scheme administrators, ahead of the pensions dashboards launch, is data security.
The research formed part of a pensions dashboards white paper entitled ‘Pensions Dashboards are a Reality: How Prepared are Administrators and Schemes?’.
The study, conducted by KGC Associates in collaboration with Bravura and its pensions software subsidiary Delta Financial Systems, analyses how in-house administered pension schemes and third-party administrators (TPAs) plan to connect with the ecosystem of pension dashboards by determining whether they will develop their own integration solution or purchase one, as well as whether they will be prepared for the first staging cohort that is scheduled to take place in April of next year.
It found that all participants in the survey said that they would be able to connect to the ecosystem of pension dashboards by the deadlines, but most felt it would cost them other projects, which would slip due to unmanageable pressure on resources.
It also revealed that 60 per cent of TPAs and almost 80 per cent of schemes intend to purchase an Integrated Service Provider (ISP) solution to avoid resource shortages, safeguard systems from possibly thousands of daily inquiries, and have access to specialised ISP expertise in order to meet the staging date.
Additionally, pension plans and TPAs both ranked data ownership and control as their top criteria when choosing an ISP. Schemes must provide proof that their members’ data is secure because trustees are still in charge of it.
Bravura principal consultant and pensions specialist Jonathan Hawkins says: “Following years of false starts and endless debate, Pensions Dashboards Programme connection dates are rapidly approaching, but our research shows pension schemes are concerned the impact this ambitious project has on their day-to-day business.
“Dashboards presents an enormous challenge to the retirement savings sector and understandably, pension schemes, TPAs and pensions providers may not feel confident to build and maintain their own connections to comply and make Dashboards a success. Our research shows that many plan to buy-in a trusted ISP.”
KGC associates director Lesley Carline says: “This is an incredibly important topic for the financial services sector as the next step in giving individuals greater freedom, visibility and control over their pensions. However, the Pensions Dashboards Programme has been a long time coming because it is not a simple undertaking.
“Finding and presenting pensions data from multiple sources including schemes, platforms and providers in one place is no mean feat. Today’s white paper shows pension scheme administrators still have a lot to get to grips with by next spring.
“To live up to the expectations of pension savers and the government, pension schemes and providers will need to make sure their data, systems and processes are in order well ahead of the connection deadline.”
The post Data security is primary dashboards concern for scheme administrators appeared first on Corporate Adviser.
