Pensions Administration

The UK pensions industry is one of the largest in the world with 3,500 funds and more than £800 billion under management. Helping to care take these valuable occupational scheme assets over the lifetime of schemes is where pensions administrators come in. Pensions administrators play a critical role in managing the day to day operation of pension schemes and associated benefits such as life assurance. Providing a high quality service is paramount. You could be dealing with a range of people such as clients, trustees, members, independent financial advisers (IFAs) and fund managers. Occupational pension schemes may be set up under trust / statute or could be personal pension plans established by contract. You may work on one scheme or a variety of schemes with different benefit bases such as defined benefit or defined contribution. Efficiency and accuracy are the two most important qualities in this job. Updating records on computerised systems, providing pension statements, settling benefits and putting pensions into payment, handling general enquiries and making members feel truly valued is all in a day's work. Liaison with other departments to ensure compliance with the legal and regulatory aspects of pensions administration is a key part of the job too. Through hard work and dedication, and by taking advantage of training opportunities, it is perfectly feasible for pensions administrators to quickly further their career.

Salary

Trainee, entry level positions start at approximately £15,000 per annum. With the right experience, qualifications and skills you could progress to pension management roles and earn in excess of £80,000 per annum.  This does not include potential bonuses and additional benefits. Salaries will vary considerably based on location and employer.

• Collating and processing new members' records on the scheme database and  validating information
• Maintaining computerised member records, dealing with updates for periodic events such as benefit statements, pension increases, scheme valuations 
• Monitoring contributions, maintaining trustee bank accounts and investing with fund managers, including additional voluntary contributions
• Accurately calculating and processing benefits for early leavers and pension scheme transfers in and out
• Accurately calculating pension forecasts and processing retirement and death benefits including lump sums and pension payouts
• Accurately calculating and processing pension sharing orders / earmarking benefits for divorce purposes
• Liaising with the other parties such as Department of Work and Pensions (DWP), HM Revenue & Customs (HMRC), the Pensions Regulator (tPR) accountants and fund managers as appropriate
• Dealing with pension scheme complaints and disputes
• Providing members and other relevant parties with information on request such as fund values, estimated benefits and various data extracts
• Customer care - dealing with a variety of general enquires and correspondence from members, advisers, trustees and communicating with them appropriately
• Ensuring work is produced in accordance with agreed Service Level Agreements and as per  Disclosure Regulations
• Administering schemes, systems and processes, that enable administration to run efficiently, effectively and profitably
• Ensuring compliance with legal, regulatory, ethical and social requirements

• Organised and responsible, methodical approach
• Accuracy and attention to detail
• Strong numeracy skills
• Excellent interpersonal skills
• Diplomacy and sensitivity, as some calls may come from recently bereaved people
• Work well under pressure
• Enjoy working in a team environment
• Able to plan and prioritise 
• Well developed IT skills
• Strong spoken and written communication skills
• Customer focussed

A new entrant will not always be required to have this knowledge. Employers usually provide training to acquire skills for:

• The regulatory and legislative environment governing pensions
• The basic principles of pensions taxation and administration
• Occupational pension product types, benefits bases and how they can interact with the State Scheme
• Benefit calculations and the administration process
• Understanding of how schemes are funded and the main asset classes 
• How to converse with and handle questions from the various parties involved in pensions

Working in pensions administration requires numerical confidence to calculate and check figures, plus the ability to communicate clearly with members verbally and in a written format. It is important to have qualifications in English and Maths. Good IT skills are also important. There are various levels of entry into the role. Any previous qualifications or experience in financial services, particularly insurance and financial advice and planning is useful.

In order to gain an entry level position, employers will look for people who have:

• A Levels, Scottish Highers or equivalent qualifications such as  Business, Administration and Finance (BAF) Diploma, BTEC National Diploma, Welsh Baccalaureate (BAC), SVQ Level 3 or Higher National Certificate (SCQF Level 7)

Apprenticeships can be a useful way to gain entry and to progress on in the profession:

• Level 3 Apprenticeship in Providing Financial Services, Pension Administration pathway (England, Scotland, Wales and Northern Ireland)

An example of the range of qualifications is below; the candidate would not be expected to do all of them but should choose the most relevant ones for their role in conjunction with the employers agreement:

• PMI Retirement Provision Certificate (RPC) and Level 2 Award in Pensions Essentials (APE), aimed at people new to the pensions industry, giving a broad overview of pensions and related benefits
• Level 3 PMI Certificate in Pensions Essentials (CPE), a  knowledge based qualification designed to support those working in specific pensions roles
• PMI Level 3 Certificate in Pensions Administration (CPA) or Level 4 Diploma in Pensions Administration (DPA), competency based qualifications that reflect normal working activities
• PMI Level 4 Certificate in Pension Calculations (CPC), to demonstrate competence in the calculation and quoting of benefits for Defined Benefit and Defined Contribution Schemes
• Level 3 CII Certificate in Financial Administration, specifically unit FA2 in pensions administration
• CII Certificate in Life and Pensions, to develop the knowledge and understanding of  financial services operational staff 
• Pensions administrators may also progress towards more advanced or specialist qualifications including:
• PMI Advanced Diploma in Retirement Provision - this is a comprehensive and in-depth qualification for retirement benefit professionals
• Diploma in International Employee Benefits, developed in partnership with PMI and the International Employee Benefits Association (IEBA), for those involved in international employee benefits

It is also possible to study for a degree and the two that may be of interest are:

• Foundation Degree in Financial Services
• Foundation Degree in Pensions Administration and Management - aimed primarily for those working in Local Government Schemes

You might work for insurance and life assurance companies, or benefits consultancies that manage schemes on behalf of other organisations. As well as commercial companies, pensions administrators are also employed in the public sector, including local and national government and other public bodies that manage their own occupational pension schemes. Job opportunities exist in most towns and cities throughout the UK. There are limited global opportunities, unless providing specific pension support to expatriates. Even then, pension administrators usually work in the UK, providing support over the telephone and by e-mail.

• Chartered Insurance Institute
• City & Guilds
• Edexcel
• EDI
• Pensions Management
• Pensions Management Institute
• Pensions World
• Scottish Qualifications Authority
• Pension Careers