ANNUAL RETIREMENT CONFERENCE Tackling the challenges of long-term - - PowerPoint PPT Presentation

ANNUAL RETIREMENT CONFERENCE

Tackling the challenges of long-term saving

Principal Partner Kindly hosted by

Opening remarks from the Conference Chair

Renny Biggins, Retirement Policy Manager, TISA

Opening keynote

Guy Opperman MP, Minister for Pensions and Financial Inclusion, DWP

Getting retirement right – Plan, prepare, enjoy

Charles McCready, Strategic Policy Director, TISA

www.tisa.uk.com 5

Launch of new report – Getting Retirement Right

3 Key Objectives

• Create a report that brings together the key challenges facing our society in trying to save

for a comfortable retirement

• Tests the current AE model against likely consumer life time journeys
• Make 5 recommendations on how to improve the current system

www.tisa.uk.com 6

Industry support

www.tisa.uk.com 7

Low levels of engagement with pensions

• 36.2 million people aged between 16 and 64 (2011 Consensus)
• 19 million employed in private sector
• Two thirds not in a pension, plus the majority of self employed (4m)

www.tisa.uk.com 8

Switch to Defined Contribution

• DC pensions start taking over in 1990s
• By 2018, employer contribution levels dropped from an average of 25% of salary into DB

to just 2.4% in a DC scheme (now increased by employer contributions moving to 3%)

• 1 million employees contributing to DB (2018)
• Over 10 million contribution to DC (2018)
• Tipping point in 2035 when DC pensions form bulk of retirement income

www.tisa.uk.com 9

Models

• Looking at generation entering AE in 2025, first to have this scheme for whole of lifetime
• Look at households as majority of people are couples in retirement and takes into

consideration their different career and savings experiences

• Used PLSA’s Retirement Living Standards, moderate income for a household - £29,000 pa
• Assumed both partners receive full state pension - £17,500
• Private pension needs to cover £11,500
• Assumes house is paid for
• There are many different life journeys that people will experience and have sought to

layer in some of the more common likely outcomes

• 8% contributions will provide private pension household income from SPA to 91

www.tisa.uk.com 10

Buying a home

• House prices have increased 173% in past 20 years versus wage increase of 19% for those

aged 25 to 34

• Home ownership for this group is low than previous cohorts
• Equity in the home provides a safety net in retirement, especially for health care costs
• Opting in/out of AE to buy finely balanced

in value of combined pension and property

• But opt outs will exhaust pension pot by 85

versus 91 for opt ins (8% contribution)

• Renters come out as very vulnerable
• Will exhaust pot at 80, increased to 86 with

12% contribution level

www.tisa.uk.com 11

Longer in poor health

• Life expectancy has increased dramatically in last 90 years rising from just over 60 years

to over 90 years (average between men and women)

• Longevity is now plateauing
• Good health not kept pace with longevity

with longer periods spent in poor health

• Costs average of £1,350 per year where

poor health is experienced

• Not including long term care
• Reduce life of pot to 87 for home buyers

that opt in and 83 for those that opt out

• 10% to 14% contribution rates required

www.tisa.uk.com 12

Scenarios

• Models covered a range of scenarios to understand impact of contribution levels and

ability to provide private pension pot for life expectancy, including:-

• Residential / home care – would require significant additional saving
• Early retirement – exhausts private pot very quickly, especially ahead of SPA
• Self-employed – requires high level of engagement with pension saving
• Increasing salary – much higher level of lifetime contributions
• Tax free lump sum – requires an additional 2% to 3% of contributions to provide the

full 25% once other living expenses taken into account

www.tisa.uk.com 13

Conclusions

• 8% contribution levels provide the desired level of income for life in relatively few

scenarios and does include home owners that remained opted when saving a deposit

• 10% provides needed boost to home buyers that opted out and/or covers ling term care

costs (not residential or home care)

• 12% provides greater assurance and incorporates an element of tax free lump sum

(depending on market conditions)

• Renters that want to continue renting privately need to save about 80% more than home

buyer to cover rent in retirement

• No solution proposed for residential or home care but equity in the home available for

some

• Not covered the how as next stage of work

www.tisa.uk.com 14

Recommendations

www.tisa.uk.com 15

Recommendations Auto-Enrolment / Pension Scheme

www.tisa.uk.com 16

Recommendations

TISA Dakota House, 25 Falcon Court Preston Farm Business Park STOCKTON-ON-TEES TS18 3TX

THANK YOU

www.tisa.uk.com 01642 666999 enquiries@tisa.uk.com

The Default Fund Conundrum

JOHN GREENWOOD EDITOR & PUBLISHER, CORPORATE ADVISER

Defaults: thoughts and preconceptions

• DB to DC switch is huge
• Defaults – not that bad. Actually rather good?
• Not all defaults are born equal
• Engagement will be key, and performance will play a role
• Good performance is more important than low charges
• Defaults will become behemoths – and pose a threat to retail
• Digital presents threats and opportunities
• Defaults could become personalised
• A mixed report card on ethical/ESG but things are changing

fast

• Retirement is a long way from being sorted

A brief history of defaults:

• DC replacing DB in private sector
• Most people not advised
• 2012: Auto-enrolment
• 10 million new savers
• Emergence of master trusts
• 2019: Master trust authorisation = consolidation
• One size fits all
• Two regulators
• Trustee boards/IGCs: scheme funders/providers

The established DC providers

Provider by DC assets (as of 30 June unless otherwise stated)

Master trust defaults

Master trust default members – by size

Default funds by assets

Master trust and GPP defaults by assets and number of employers

Expect behemoths - the Australian experience

• £1.4 trillion in DC assets Down Under
• From£78bn in 1992
• Projected to hit £1.8 - £2.6 trillion by 2025
• £3.1 - £3.65 trillion by 2030
• Population of 26 million - 9.5% contribution
• Biggest Aussie Super £89bn

UK default fund performance is mostly good

• Annualised return to 30.9.19, growth phase (30

years to SPA)

• CAPA 9.65% = 54% cumulative
• More than employer contribution or tax relief
• Top performer – SuperTrust UK, 13.5% = 84%

cumulative

• Bottom performer – Now: Pensions, 4.54% = 25%

Different strategies generating different outcomes (cum figures assume 0.5% charge) Source www.capa-data.com

What will the public make of it?

Short term returns will not tell the whole story

Growth phase default fund: risk/return, 12 months to 31.9.10

A range of different approaches to risk

Data to Q1 2019 – younger saver (30 years to SPA), 5 years annualised returns

• Source: www.capa-data.com

A wide range

• f landing

points

• Risk ranges from virtually non-

existent to significant Risk/return Saver 1 day to SPA 5- yr

• Source: www.capa-data.com

Equity content at State Pension Age

Equity content of defaults at state pension age (%)

Cash/government bond content at SPA

Cash/ government bond content

• f defaults at state pension age

(%)

Workplace challenging retail?

• Workplace defaults outperforms

financial adviser pension recommendations

Trust and alignment of interests – the Australian experience

• Royal Commission – Retail/for-profit criticised for poor regulatory oversight
• Profit-for-member v shareholder-owned
• Broader asset class
• Investment budget spend – illiquids?
• Performance
• Transfer of assets

ESG and defaults – a mixed report card

Do you plan to introduce ESG strategies over the next year? (%YOY)

• Master trusts and GPPs are

shifting to ESG models

• But single-employer trusts are

lagging – UKSIF found just 30% of trusts complying with new ESG rules

Any questions?

JOHN GREENWOOD EDITOR & PUBLISHER, CORPORATE ADVISER

Investment pathways

Turning regulation into opportunity

Andrew Storey, Propositions Director

Introduces investment pathways for consumers entering drawdown without advice

FCA PS19/21

When it comes into force

172 Days

Direct to consumer drawdown providers Adviser-focused drawdown providers Trust based pension schemes

Who is affected

Choosing appropriate funds

• Competitive advantage for investments

Explaining the choices and risk

• Improves the outcomes for customer
• Reduced risk of customer expectations not being met

Where are the opportunities?

Choosing appropriate funds

Pick a fund for each of the 4 objectives:

What do you need to do?

• Best fit across your

customers

• Group your customers and

present a different fund

• Allow customers to assess fit

themselves

Does one size fit all?

Assess what’s happened in the past? Or check potential to meet objectives in the future? Being customer outcome focused

Turning regulation into

• pportunity

• Is it measurable?
• Are outcomes considered?
• Is it meaningful to the customer?
• Can it explain risk?
• Is it simple to understand?
• Is it realistic for income?

A useful checklist for appropriateness

Example age related check

• Outcome defined as likelihood of sustained income over life
• At a 3 out of 5 risk level ie a 70% chance
• Using income increasing at 3% pa

Explaining it all to your customers

COBS19 is prescriptive for the journey

1 2 3

How do you want to select your investments? What is your objective? Here’s information on your fund

COBS19 is prescriptive for the journey

1 2 3

How do you want to select your investments? What is your objective? Here’s information on your fund

Explain risk so that expectations can be set

How risky is this fund?

3

Here’s information on your fund

What does this mean for me? What income could I get?

How risky is this fund?

What does this mean for me?

How much could I receive?

What income could I get?

Increase levels of drawdown

Sources: FCA Data bulletin 2018 https://www.fca.org.uk/publication/data/data-bulletin-issue-14.pdf EValue’s Pension Freedom Index https://blog.ev.uk/pensions-freedom-index-2019-drawdown-tops-the-list

• Is this the right step towards

better guidance and financial wellbeing?

Keeping the focus on the customer outcome

In summary

If you provide drawdown... You need to do the right thing in 172 days from now

• Customer outcome focused
• Simple and meaningful
• Realistic for income
• Find your competitive

advantage You can check existing funds for appropriateness

• How risky is this fund?
• What does it mean for me?
• What income could I get?
• Opportunity is to guide

customers to do the right thing

Explain risk

Thank you

Come and talk to us on our stand today Don’t forget - 172 days to go!

Refreshments & networking

10.40 – 11.10

Charlotte Jackson Head of Pensions Operations & Customer Protection 11 February 2020

The Money and Pensions Service

UK Strategy for Financial Wellbeing

AGENDA

1 Overview of the UK Strategy for Financial Wellbeing – launch and challenge groups 2 Future Focus: Pensions Operations, opportunities and challenges ahead 3 Working together

Introducing the Money & Pensions Service

Created by bringing together the three providers of financial guidance… … our aim is to make financial wellbeing a national priority and to bring about changes which will affect millions of lives.

UK Strategy for Financial Wellbeing

2020—2030

Money and Pensions Service

Why we exist

The Money and Pensions Service is here to make significant improvements to financial wellbeing in the UK. According to the OECD, the UK is well down the G20 rankings in terms of financial wellbeing. We have been given a legal duty to coordinate a national strategy that addresses this vital issue.

UK Strategy for Financial Wellbeing 83

11.5m

people have less than £100 in savings

9m

• ften borrow

to buy food or pay bills

22m

do not know what they need to plan for retirement

5.3m

children do not get a meaningful financial education

What is the UK Strategy for Financial Wellbeing?

Future Focus

Pensions and later life Challenges

Engagement – addressing the trade offs and delays caused by living for today More choices = need for good decisions by people who are confident and able to make them Impact of behavioural bias on pensions, mortality, later life and opportunities to nudge Intuitive design of products Creating a sense of ownership and trust

Money and Pensions Service

Targeted Interventions

In the future focus work strand we are particularly conscious that the challenges ahead are likely to be very different between the different generations and by gender. We will look at how customers are fairing, their ability to save for retirement, at the touchpoints when they could, should and do engage and the role MaPS plays in improving outcomes in retirement.

UK Strategy for Financial Wellbeing 87

Baby boomers

Retirement on the horizon Greatest exposure to DB pensions Financially resilient Confused about pensions

Generation x

(Mid income)

Mix of DC savings Housing wealth Squeezed by caring responsibilities

Generation x

(Low income)

40m over indebted Likely to be paying minimal pension contributions and have small pots Squeezed by caring responsibilities

Millennials

(Middle income)

Likely to be in AE mater trusts paying minimal contributions Least financially confident Least wealthy have no savings 4/5 don’t know enough about savings to make a suitable choice

What is the process and timeline to deliver the National Goals?

The Activation Phase will focus on bringing together influential stakeholders in a wide range of

• rganisations and sectors. These
• rganisations will bring forward

recommendations that will help build bold and ambitious delivery plans to achieve the National Goals outlined in the UK Strategy

The Momentum Phase will focus on the recommendations from the Challenge Groups to prepare delivery plans for each of the UK Strategic Goals and all nations. This phase will also include a framework and measurement

• f Financial Wellbeing and a UK wide

Financial Wellbeing summit to launch the delivery plans, Financial Wellbeing movement and a campaign to engage

• rganisations outside the Challenge

Group process

The two Delivery Phases will focus on driving forward the activities and initiatives set

• ut in the delivery plans

developed during the previous phases of work Mobilisation and activation

• f the UK Strategy

Delivery of the 2030 UK Goals

Money and Pensions Service

public sector private sector voluntary sector

Collaborating across the UK

Activation

If people in the UK are to enjoy better financial wellbeing, many different organisations need to work together towards the same goals. We are now looking at the strategy’s priority areas in detail, creating specific delivery plans, and setting milestones for our ten-year journey towards better financial wellbeing. We plan to finish the activation stage of the strategy by summer 2020.

UK Strategy for Financial Wellbeing 89

Joining in

We are now working with leaders in:

Across the UK

We are also looking at particular financial wellbeing issues facing women and people with mental health problems.

We are creating delivery plans for each of the four nations

Thank you

Any questions?

Panel discussion - Decumulation options

Nathan Long, Research Analyst, Pensions, Savings and Investments, Hargreaves Lansdown Dale Critchley, Policy Manager, Workplace Savings and Retirement, Aviva William Burrows, Financial Adviser, Better Retirement Steven Cameron, Public Affairs Director, Aegon UK

Lunch & networking

12.55 – 13.55

Keynote presentation – What is next for successful regulation?

David Fairs, Executive Director of Regulatory Policy, Analysis and Advice, The Pensions Regulator

Norton Rose Fulbright LLP 11 February 2020

DB to DC Transfers

• What are the legal considerations for

those involved in the transfer process?

• Could this be the next financial scandal?

Shane O’Reilly Partner Imogen Garner Partner

Introduction

*FCA video “Our expectation of financial advisers when advising you on pension transfers” August 2019

TPR DB to DC transfers and conversions guidance 2019

96

• Pension transfers are big business
• Since Freedom & Choice in 2015

– £60bn in DB transfer activity – £34bn in 2018/2019 alone – 250% rise on 2017/2018 – 210,000 individual cases

• What can trustees do to:

– Protect members – Protect themselves – Ensure compliance with their legal obligations

Backdrop

Record interest levels Since Freedom & Choice in 2015 Regulatory evolution Increased threat of scams

*source FoIA request from Royal London, 2019

97

Member entitlement to a DB transfer

• Statutory right under Part 4ZA of PSA 1993 (supplemented by Transfer Regulations)
• Where

– DB member has right to (uncrystallised) benefits – accrual has ceased – application to transfer is made more than one year before NRD PSA provides a statutory right to a CETV

• Where CETV exceeds £30,000, must take appropriate independent advice
• Receiving scheme must be registered (or QROPS) and can be occupational, personal or

SIPP

• Where statutory timeframes and conditions are met, trustees must effect transfer
• Scheme rules may provide entitlements in wider situations

98

Advice requirement

• Where value of ‘safeguarded’ benefits over £30,000, s48(8) of Pension Schemes Act

2015 applies – ‘appropriate independent advice’ is required – Authorised independent adviser – Relevant FSMA permissions as prescribed

• Regulation 7 of Pension Schemes Act 2015 (Transitional Provisions and Appropriate

Independent Advice) Regulations 2015 requires confirmation from adviser that: – Advice specific to transaction – Adviser has required authorisations and permissions – Adviser reference numbers – Member and scheme name

99

Statutory timeline

Source: TPR DB to DC transfers and conversions guidance, December 2019

100

• TPR clear that despite the legal framework, pensions industry should

do what it can to protect members

• Warnings in place since 2013
• Dedicated scam section on website

https://www.thepensionsregulator.gov.uk/pension-scams

• DB to DC transfers and conversions guidance – December 2019
• Trustees should ensure they have processes in place to implement

transfer requests in a timely manner

• Acknowledged that where statutory conditions met, Trustees cannot

prevent transfer BUT expected to carry out appropriate diligence

• Clear steer that NOT trustee’s role to second-guess member’s

decisions BUT need to be aware and make members aware of risks

• May take Trustee behaviours into account when exercising powers

Regulatory expectations

101

– PASA Guidance: Defined Benefit Transfers: A Guide to Good Practice – July 2019 – PSIG’s Code of Practice ‘Combating Pension Scams’ - v2 issue June 2019 – TPR/FCA - joint ScamSmart campaign

What else can trustees do to protect members (and themselves)?

102

Practical steps for trustees and administrators

• 1. Robust

transfer processes

• 8. Alert

member of identified risks

• 7. Due

diligence on receiving scheme

• 2. Be aware of

the issues. Ensure familiar with industry materials

• 5. Check

scheme rules 6.FCA Authorisation checks (s 48 advice)

• 4. Check facts

closely against CETV requirements 3.Make member aware of risks at time of transfer (ScamSmart materials)

• 9. Check

Scheme discharge provisions

• 10. Consider

IFA support?

103

Legal Entity Date

Pensions: FCA interventions since 2015

• Pension Freedoms were announced in 2015 by way of the Pension Schemes Act

– The new regime has allowed pension holders over the age of 55 to access their accrued pension savings to invest them how they might choose. – Previously, pension holders could access 25% of savings as a lump sum and use the rest to fund lifelong income by way of an annuity. – The Pensions Schemes Act allows pension holders to access the entire sum (albeit not entirely tax free) and invest it how they wish

• The FCA has consulted heavily in this area (9 consultations/policy statements between 2016 and

2019)

• The FCA discovered that there was a high percentage of unsuitable advice – particularly in regards

to transferring out of a Defined Benefit pension and into a Defined Contribution pension

• The FCA is of the view that since the introduction of Pension Freedoms, too many customers are

transferring out of a pension when it is not in their best interest.

The Pension Story

105

Pension Type Pros Cons Defined Benefit Guaranteed benefit at payout Can be less risky Protection against longevity and investment risk Less choice Can represent ‘lost’ earnings Poor drawdown ability Defined Contribution More choice of provider Greater variety of assets to invest in Ability to react to market more Lower admin costs Higher risk Leaves consumers vulnerable to scams No guaranteed amount of retirement earnings Longevity and investment risk

The Pension Choice – Defined Benefit vs Defined Contribution

106

Timeline of FCA action in the pension sector

April 2015

Announcement of Pension Freedoms

October 2015

FCA publishes CP15/30 : Pension reforms - proposed changes to our rules and guidance

April 2016

PS16/12: Pension reforms – feedback on CP15/30 and final rules and guidance

2017

FCA clarifies expectations on pensions transfers

107

• Rules are set out in COBS 19.2.2R(1) – which determine what a firm must do in preparing and providing

transfer analysis.

• In particular, the rules require a comparison between the benefits likely (on reasonable assumptions) to

be paid under a DB scheme or other safeguarded benefits with the benefits afforded by a personal pension scheme, stakeholder scheme or other pension scheme with flexible benefits

• Section 48 Pension Schemes Act 2015 require that the trustee/scheme manager check that advice has

been taken before a transfer can proceed involving a DB pension or other safeguarded benefits worth more than £30,000. The advice must be provided by a firm with the permission to do so.

• Recommendations to transfer should not be based solely on critical yield
• Only firms with FCA permission may advise on pension transfers. However some confusion arose in that

firms without permission could delegate this process to an FCA authorised firm.

• The FCA also gave advice on how to deal with insistent clients
• The FCA also gave advice on the parameters around personal recommendations
• The FCA distinguished between ‘pension transfer’ and ‘pension switch’ (the latter is not under any

requirement to take advice).

FCA’s expectations on pension transfers

108

Timeline of FCA action in the pension sector

June 2017

FCA publishes CP17/16 – advising on pension transfers

March 2018

FCA publishes policy statement PS18/6 - Advising

• n Pension Transfers –

feedback on CP17/16 and final rules and guidance

March 2018

FCA publishes consultation paper CP 18/7 –Improving the quality of pension transfer advice

October 2018

FCA publishes policy statement PS18/20 Improving the quality of pension transfer advice

December 2018

FCA FCA issues update on pension market (based on data collected between April 2015 and September 2018)

July 2019

FCA publishes consultation paper CP 19/25 - Pension transfer advice: contingent charging and other proposed changes

109

• 1) Amending the Pension Transfer Specialist (PTS) qualification and the exam qualification standards
• all PTSs must hold a Level 4 qualification for providing advice on investments as defined in the

Retail Distribution Review, before they can give or check pension transfer advice.

• this qualification would need to be obtained by October 2020
• 2) Additional guidance on processes the FCA expected advisers to have in place before dealing with

clients and other stakeholders, in respect of what is known as the two adviser model. This guidance was set out FCA expectations that:

• a) parties work together to collect necessary information to inform both the pension transfer

advice and the associated investment advice.

• b) undertake risk profiling, which assesses both the client’s attitude to transfer risk and attitude

to investment risk

• c) recognise that the investment advice should consider the impact of the loss of any

safeguarded benefits on the client’s ability to take on investment risk

FCA’s proposals consulted and acted on in PS18/20

110

• 3) New perimeter guidance on how firms can provide appropriate triage service without stepping across

the advice boundary

• 4) Introducing new guidance on assessing a client’s attitude to risk
• 5) Introducing new rules requiring firms to provide suitability reports when recommending a transfer

should not be made

• 6) Amending assumptions for valuing limited inflationary pension increases within a scheme

FCA’s proposals consulted and acted on in PS18/20

111

• In 2017 Tata announces restructuring to keep loss making UK operations afloat
• In April 2017 a surge of transfers out of the DB pension scheme begins
• In October 2017 members are presented with three choices: Pension Protection Fund, new (but lower

increase) defined benefit scheme, or transfer out in to private pension scheme.

• Vast reports of vulture firms engaged in aggressive marketing to convince people to switch from DB to

DC pensions. Chicken and chips advice sessions etc.

• Problem of vulnerable consumers having to make complex decisions
• The FCA has been heavily criticised by the Treasury Select Committee for failing to act when problems

arose

The Pension Story – British Steel

112

Timeline of FCA action in the pension sector

June 2017

FCA publishes CP17/16 – advising on pension transfers

March 2018

FCA publishes policy statement PS18/6 - Advising

• n Pension Transfers –

feedback on CP17/16 and final rules and guidance

March 2018

FCA publishes consultation paper CP 18/7 –Improving the quality of pension transfer advice

October 2018

FCA publishes policy statement PS18/20 Improving the quality of pension transfer advice

December 2018

FCA FCA issues update on pension market (based on data collected between April 2015 and September 2018)

July 2019

FCA publishes consultation paper CP 19/25 - Pension transfer advice: contingent charging and other proposed changes

113

• 1) Addressing initial conflicts by dealing with contingent charging
• bans on contingent charging for DB transfers and conversions, except for specific groups of

consumers with certain identifiable circumstances

• where contingent charging is permitted, the amount charged must be the same as if the advice

was non-contingent.

• 2) Addressing ongoing conflicts: strengthening the requirements on firms to consider an available

workplace pension as a receiving scheme for a transfer

• 3) Improving disclosure of advice charges before the advice process starts and improved suitability

reports

• 4) Requiring PTSs to complete 15 hours of continuing professional development in a year
• 5) Extending the range of data the FCA currently gets from advisors

Pension transfer advice: contingent charging and

• ther proposed changes CP19/25 (July 2019)

114

• Pension Freedoms were introduced to promote choice and efficiency in the pension market
• BUT – now the FCA views pension transfers (away from a workplace pension) to be against a

consumer’s interest in most cases.

• A recent Dear CEO letter (21 January 2020) stated that pension advisors should start from the premise

that a transfer is not in the best interests of their client. In the same letter the FCA acknowledges the risk

• f scams and ‘vulture’ firms targeting pension transfer customers.
• When the FCA collected data (between 2015 and 2018) and discovered that 69% of pension advice

resulted in a recommendation to switch – it felt that this was too high and indicative of unsuitable advice

• The most recent consultation paper has increased the disclosure requirements on pension transfer

specialists, introduced requirements for their ongoing professional development and has proposed bans

• n contingent charges (e.g. fees are only charged where a transfer is effected – leading to an increased

tendency amongst pension advisors to recommend a transfer)

The Pension Story – the paradox

115

• The FCA published retirement income market data in September 2019
• Data appeared to show pension transfers were still very prevalent and arguably represented a ‘threat’

– 48% of pension plans were accessed without regulated advice or guidance – 4 in 10 pension pots were accessed the first time and 90% of these resulted in full withdrawals

• FCA action in the DB transfer space does appear to be working
• Around 57,000 transfers from DB to DC schemes took place in 2018/2019
• The number of transfers in the second six months of this period was down 24% on the first six month

period.

• This was also ‘notably’ lower than the six month period between October 2017 and March 2018
• The FCA is hoping that the decline reflects greater awareness of the risks of DB to DC transfers

Are FCA interventions working?

116

Law around the world

nortonrosefulbright.com

TAX#30206216

Refreshments & networking

15.35 – 16.05

Pensions Dashboards Industry Delivery Group - Progress so far

Chris Curry

IDG Principal

• 1. Introduction
• 2. Overview - The Pensions Finder Service and dashboards ecosystem
• 3. Progress so far and timelines
• 4. Challenges and considerations
• 5. How to get involved

Contents

120 Money and Pensions Service

• The Pensions Dashboards Industry Delivery Group (IDG) is part of

the Money and Pensions Service (MaPS) an arm’s length body of DWP

• MaPS is the only organisation able to exercise any control over the

entire ecosystem and the IDG carries this responsibility – drawing on the minimum requirements of the legislative and regulatory frameworks.

• IDG is responsible for the entire dashboard service i.e. the technical

architecture, standards/services based on the needs of users.

• Note: The IDG does not ‘deliver’ dashboards

Who we are

121 Money and Pensions Service

The Ecosystem around the Pension Finder Service:

Find and View – minimum viable product

MaPS DASHBOARD EXISTING DASHBOARDS* NEW DASHBOARDS A.N. OTHER DASHBOARD

PENSION FINDER SERVICE IDENTITY SERVICE GOVERNANCE REGISTERS

STATE PENSIONS A PENSION SCHEME A PENSION SCHEME A PENSION SCHEME

• A. N. OTHER

PENSION SCHEME INTEGRATED SERVICE PROVIDER State Pension Adapter - DWP to build Key MaPS Dashboard - MaPS to build Digital Architecture - IDG to build Other Dashboards - Industry to build 122 Ecosystem Governance Framework (Technical, security, design, accessibility performance and user experience standards) - IDG to set and monitor * Pre-existing dashboards must

meet IDG requirements to connect to the ecosystem

MaPS EXISTING DASHBOARD PROVIDERS NEW DASHBOARD PROVIDERS OTHER DASHBOARD PROVIDERS OTHER PLATFORMS Regulators TPR & FCA Government DWP & HMT INTERFACE INTERFACE MaPS Advice Money and Pensions Service

Phases of delivery

Discovery Alpha Private Beta Public Beta

Live

User needs

Exploring the problem space Testing options with hypothesis Building and refining options Continuously improving

Laying the foundation Building the core service Staged onboarding of data providers

IDG programme phasing

Enabling an innovative dashboards ecosystem

Release 2, 3 to n

Money and Pensions Service

124 IDG Principal appointed December 2019 Steering Group selected Data Elements Working Group Preparation July 2019 September 2019 Deliverables

• road-map
• data elements
• working groups guidance

pack

• draft project plan
• service architecture
• customer journey review
• risk analysis
• user research review
• business case
• cost model assumptions

October 2019 Pension Schemes Bill published First Steering Group meeting

Progress so far

Expressions of interest for working groups Money and Pensions Service January 2020 Pension Schemes Bill re-published Second Steering Group meeting February 2020 Defining scope and functionality

• f

dashboards with Steering Group

Identity Verification (IDV) in the digital architecture – this is a Technology issue Identity Matching (IDM) – this is a Data Quality issue Income projections on a standard basis – this is a Policy/FRC/JFAR issue

Challenges and considerations

Money and Pensions Service 125

• Topics for the IDG to consider:
• Scope and functionality
• Data ‘readiness’
• Technical architecture and design
• User journeys and interfaces
• Digital ID and verification
• Security
• Dashboard governance
• Data provider onboarding, management and sequencing
• Future business model

For more information on getting involved visit: www.moneyandpensionsservice.org.uk/pensions-dashboard/pensions-dashboards- industry-delivery-group/

Getting involved

126 Money and Pensions Service

Thank you

chris.curry@maps.org.uk

Money and Pensions Service

Panel discussion - Pension scams - The extent

• f the problem

Margaret Snowdon OBE, Chair, Pension Scams Industry Group Tommy Burns, Risk and Financial Crime Manager, Customer Operations, Standard Life Christopher Brooks, Senior Policy Manager, Age UK

Closing remarks from the event Chair

Renny Biggins, Retirement Policy Manager, TISA

THANK YOU

Please join us for the drink's reception

Principal Partner Kindly hosted by