Latest whitepaper from Bravura reveals impact on businesses with scheme administrators and TPAs
Bravura Solutions Limited (ASX:BVS) (Bravura): the financial software solutions company, today announces findings that the primary concern amongst pension scheme administrators, ahead of the pensions dashboards launch, is data security.
The latest research conducted by KGC associates, in partnership with Bravura and its pensions software subsidiary Delta Financial Systems, examines how in-house administered pension schemes and third-party administrators (TPAs) are planning to connect with the pensions dashboards ecosystem by analysing whether they will build their own, or buy, an integration solution, and whether they will be ready for first staging cohort due in April next year.
Key findings from the research, forming part of a Pensions Dashboards whitepaper entitled Pensions Dashboards are a Reality: How Prepared are Administrators and Schemes? include:
- All participants surveyed stated they would be able to connect to the pensions dashboards ecosystem within the deadlines, however most felt it would come at a cost with other projects slipping due to unworkable pressure on resources;
- To achieve the staging deadline, 60% of schemes and nearly 80% of TPAs plan to buy an Integrated Service Provider (ISP) solution to minimalise resourcing shortages, protect systems from potentially thousands of daily enquiries and benefit from specialist ISP skills;
- Data ownership and control were cited as the top priority for both pension schemes and TPAs when selecting an ISP. With the responsibility for member data remaining with trustees, schemes need to evidence that their data is in safe hands.
Jonathan Hawkins, Principal Consultant and Pensions Specialist at Bravura, said: “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.”
Lesley Carline, director at KGC associates, added: “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.”
To further explore and debate the concerns administrators and TPAs share in the run-up to the pensions dashboards connection deadline, Jonathan Hawkins and Lesley Carline will co-host a free webinar on 16 September 2022 at 11am (BST).