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DWP scraps Pension Statement Service

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The Department for Work and Pensions has scrapped its paper-based pension statement service as part of a migration to a new IT system.

The Combined Pension Statement Service was launched as a voluntary initiative in 2001 to show savers their state pension and personal pension projections in one place.

But the DWP says the service will close in April 2016 and will eventually be replaced by a digital service.

A DWP spokesman says: “We are working with HMRC to introduce a transformed, largely digital service that will help users to understand the link between their State Pension and National Insurance.

“It will allow users to model future circumstances and the effect of paying additional NI contributions.”

The service is undergoing testing and is due to launch later this year.

Aegon regulatory strategy director Steve Cameron says the concept was good but few employers took up the initiative because it was complicated to implement.

He says: “As we move away from paper-based pension statements to a digital world, with the Government’s participation, it should be easier for pension providers and employers to offer scheme members online access not just to projections of private pensions but also to information on state pension entitlements.

“This could be advanced as part of the ‘pensions dashboard’ idea which aims to offer individuals digital access to information on all of their pension entitlements, in one place.”

One of the FCA’s recommendations following its thematic review of the annuity market was the development of a Dutch-style pensions dashboard.

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