Pension scheme manager
Pension scheme managers are responsible for ensuring that pension schemes operate effectively and sustainably. Their main function is to manage a pension fund - a large pot of money paid in by companies and individuals over many years to provide benefits in retirement.
Pension scheme managers may coordinate schemes that are managed by a company/employer, a benefits consultancy, a public sector pensions provider or an insurance company. They may also be involved with defining the strategic development of schemes as well as overseeing the day-to-day management of pension funds. Developing new schemes or managing related funds may also be a feature of the work.
Pensions management is an increasingly important area of work due to the shift in government policy away from dependence on the state pension as the main provider of retirement income.
Work activities vary according to individual companies but may involve:
The work may also involve developmental activities such as:
Although this area of work is open to all graduates, a degree in the following subjects may improve your chances:
Entry with an HND/foundation degree and entry without higher education qualifications is possible at pensions administration level. Progression to pension scheme management may become possible once experience and professional qualifications have been gained.
A postgraduate qualification such as an MBA is not essential but could increase your chance of success in the pensions management field, particularly if your first degree was not in a business or numerate subject. Professional qualifications provided by the Pensions Management Institute (PMI) or the Chartered Insurance Institute (CII) may increase your career development opportunities.
Entrants to pensions management will often have previous experience in pensions administration or pensions consultancy, or in a related role such as accountancy, actuarial work or investment management.
Candidates need to show evidence of the following:
Candidates should look for pension management trainee schemes (with large companies) at the beginning of their final year of study. Acceptance on to one of these schemes will provide you with valuable work experience and enable you to be entered for the PMI examinations.
For more information, see work experience and internships and search courses and research.
Pension scheme managers will usually work towards the Pensions Management Institute (PMI) Advanced Diploma in Retirement Provision. It may also be useful to complete the PMI Level 3 Award in Pension Trusteeship (Defined Contribution and Defined Benefit Schemes), particularly for those working closely with Trustees. Once you have passed the Advanced Diploma and have at least three years' relevant work experience in the pensions industry, you are eligible to become an associate member of the PMI.
Graduate trainee roles, whether with in-house schemes or consultancies/insurance companies, provide exposure to many elements of scheme management. Some trainees in insurance companies, for example, follow a rotation for the first two years and only then make a decision to specialise in pensions or other parts of the business.
Graduates can also enter the profession as a pensions administrator and work their way up to pension scheme manager. This role involves administration of pension schemes and focuses on the processes and details of the scheme. Pensions administrators work with data and systems management, answering individual personal queries and working within a team. From this role, it may be possible to move into a team leader position. Undertaking further training and qualifications with the PMI is a key element in developing a career in this way.
You can also undertake training to improve your skills in areas such as project management or presentation skills, or to learn a particular software package used in your job.
As the pensions industry is so complex, professional qualifications from the following professional associations may also be useful for pension scheme managers:
Most pension scheme managers undertake the Pensions Management Institute (PMI) Advanced Diploma in Retirement Provision. Those working closely with trustees may also have completed the PMI Level 3 Award in Pension Trusteeship (Defined Contribution and Defined Benefit Schemes). Once you have passed the Advanced Diploma and have at least three years' relevant work experience in the pensions industry, you are eligible to become an associate member of the PMI.
Undertaking continuing professional development (CPD) is essential for membership of professional bodies and career progression. The PMI provides an online CPD recording system, enabling members to keep track of their learning and development activities. Membership of organisations such as the PMI and Chartered Insurance Institute (CII) is also useful for keeping up to date with industry news and for networking and developing industry links through regional and national events.
Reading trade magazines, such as Pensions World , is also useful for keeping up to date with changes to the profession and the pensions industry.
As pensions departments within companies are often small, it is fairly common to change employer in order to progress. With experience, it is possible to manage larger departments or schemes. A move into a related sector, such as insurance, is also possible. Opportunities exist for experienced professionals to become self-employed pensions consultants.
Many pension scheme managers are employed by large companies and organisations in the public, private and not-for-profit sectors that operate their own occupational pension scheme.
However, opportunities also exist with:
Most graduate positions are based within large companies or institutions. Smaller companies are more likely to operate either externally managed schemes or stakeholder schemes, with the company secretary or finance director dealing with decision-making. Smaller pensions providers usually recruit experienced pensions staff.
Many entrants to the profession start as pensions administrators and then, by gaining pensions qualifications, develop their career within pensions management.
Recruitment agencies commonly handle vacancies, and there are specialist recruitment agencies for the pensions industry. For a list of member agencies search the Recruitment and Employment Confederation (REC) consultancy finder.
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