7 days

7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days

Pensions dashboards updates

On 9 April 2024, the PDP published a blog on the DWP’s dashboards connection guidance which sets out the staged timetable for when pension providers and schemes in scope are expected to connect to the dashboards ecosystem. The blog explains that trustees will need to be able to demonstrate how they have considered the guidance when planning and making decisions for their connection, and discusses the benefits of the phased approach to connection before the statutory connection deadline of 31 October 2026.

New DWP guidance was published on 12 April 2024 to help trustees prepare illustrations of potential annual income from a member’s DC pot. This is known as an “annualised” version of the accrued pot value, and forms part of the value data that must be provided to dashboards for members with DC benefits. TPR has made minor updates to its dashboards guidance to refer to this DWP guidance.

TPR sets out findings from review of climate reports

On 11 April 2024, TPR published a press release detailing its findings from analysing a representative sample of climate reports. TPR gives observations on good practice and suggested improvements. When preparing reports, trustees are asked to consider:

  • giving information such as scheme size, structure of DB sections and popular DC default funds early in the report to provide context for readers
  • where reports reference specific investment mandates, explaining their size in relation to total scheme assets to help readers understand an issue’s materiality
  • providing plain English summaries for members.

Recommendations to improve scenario analysis include:

  • providing commentary on the challenges and limitations of the scenario analysis undertaken
  • taking these challenges and limitations into account when drawing conclusions about the scheme’s exposure to risks.

Transition Plan Taskforce publishes latest net zero resources

The Transition Plan Taskforce has published a set of resources to help pension schemes assess and plan for the transition to net zero, which TPR considers is “important for the effective management of material climate-related financial risks and opportunities”. The resources include a “disclosure framework” which sets out “good practice for robust and credible transition plan disclosures” and case studies relating to elements of the framework.