Pensions Management
- Description
- Tasks
- Skills
- Useful Knowledge
- Entry Qualifications
- Professional Qualifications
- Trends
- Resources
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Individuals paying into pension schemes need reassurance that their scheme is delivering everything they expect and that they are being kept aware of developments, both in terms of scheme performance and wider industry changes. A pension manager ensures pension schemes are being run effectively and meet industry standards. Pension managers work for large companies that manage their own pension schemes, public sector pension providers, life assurance firms, third party administrators and actuarial consultancies. Many large companies appoint trustees – member and employer nominated representatives – to operate and oversee their defined benefit occupational schemes. However, these trustees are not necessarily pension professionals so as a pensions manager you will often be expected to provide trustees with technical training and support. A pension manager will also act as an arbitrator making sure both the employer, who is primarily accountable to shareholders, and trustees, who represent scheme members, are both acting in an appropriate manner. Consequently, interpersonal and strong negotiating skills are essential. They would also manage relationships with actuaries, investment consultants and legal advisers, co-ordinating regular reports and meetings. Finally, they are expected to ensure that any agreed meeting actions are followed up within set timescales.
Salary
As an experienced role, positions start at approximately £25,000 per annum. With the right experience, qualifications and skills you could progress to 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.
- Recruiting, training and/or supervising a pensions administration team
- Developing pension policies and new pension schemes, constantly reviewing the fund’s strategy and structure
- Ensuring pension schemes are effective and meet agreed quality, performance and customer care standards
- Drafting and circulating update reports and computerised information to trustees and members, including contributing to annual financial reports
- Resolving complex or controversial pensions claims
- Making recommendations to clients, Board directors and trustees on ways to improve schemes based upon current scheme performance and member feedback
- Attending meetings with fund managers, actuaries, trustees, solicitors, accountants and Board members
- Setting trustee meeting dates, preparing and distributing agendas and circulating minutes and action points
- Monitoring pension scheme deficits and preparing due-diligence reports to establish the extent of liabilities (especially appropriate during sale, merger or acquisition negotiations)
- Ensuring compliance with current statutory regulations, keeping up to date with legislative changes, ensuring all nominated scheme trustees are trained
- Analytical and attention to detail
- The ability to interpret complex information
- Articulate, both verbally and in writing
- Objective, logical and enquiring mind, with good judgement
- Organised
- Excellent leadership and interpersonal skills
- Strong numerical and IT skills
- Confident, persuasive decision-makers
- Resilience under pressure
- Enjoy working in a team environment
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
- Understanding the varying nature of pension schemes and trusts and varying conflicts of interest
- How to define, amend and review a pension fund’s strategy and structure
- The guidance, formal support and information that Trustees require
- Occupational scheme Trust rules and Trust Deeds
- Communications that must be shared between pension suppliers, advisers, regulators and Trustees
- How to review pension contracts and the renewal and re-negotiation processes
It is likely that before working in pensions management that you will have previously worked in pensions administration, pensions consultancy or in an accountancy, actuarial, legal or investment management role. This insight will provide many of the skills necessary for pensions management.
You could start as a pensions administrator and work your way up to a management position. Having a pensions qualification from the Pensions Management Institute (PMI) or Chartered Insurance Institute (CII) could increase your progression opportunities. See the Pensions Administration profile for details.
As a pensions manager you will usually work towards the:
- PMI Advanced Diploma in Retirement Provision
It may be appropriate for pension managers working closely with Trustees to also complete the PMI Level 3 Award in Pension Trusteeship (Defined Contribution and Defined Benefit Schemes).
As the pensions industry has many different facets, professional qualifications from the following associations may also be useful for pension scheme managers:
- Chartered Institute of Payroll Professionals (CIPP)
- Chartered Insurance Institute (CII)
- Institute of Chartered Secretaries and Administrators (ICSA)
- The Institute and Faculty of Actuaries
The majority of pensions scheme managers work for large companies and organisations within the public, private and not-for-profit sector that operate their own occupational pension scheme. Opportunities also arise with large insurance companies and investment management companies and consultancies that run schemes on behalf of other companies. Job opportunities exist in most towns and cities throughout the UK. If your company has numerous locations throughout the country, periodic travel may be required.
