Any Other Business: From supervising providers and monitoring scheme performance to managing key relationships, the modern day pensions manager is now the ultimate multitasker. So how easy is it to find the perfect candidate?
Type 'pensions manager jobs UK' into a well-known search engine, and you will be presented with numerous advertised vacancies, most of which display a daunting plethora of role requirements.
Someone needs to be the glue between the members, the regulatory environment, and the trustee body
Robert Branagh, PMI
Among the list of demands are technical competence, a thorough understanding of pensions legislation, excellent communication skills, and experience of the investment, administration and funding aspects of running a scheme.
A range of skills is required
With millions, or billions, of pension pounds at stake, it is not surprising that companies want someone with an impressive skill set and plenty of experience.
Depending on the organisation, scheme managers are, among other things, often required to monitor performance, develop member communication strategies, organise meetings and manage relationships between the trustees and employer.
So how has the role developed over the years, what kind of experience is most widely sought-after and, ultimately, what makes the perfect pensions manager?
Dinesh Visavadia, director at professional trustee company ITS and former head of pensions and benefits at Britvic Soft Drinks, said hiring somebody with a good knowledge of financials is crucial, as is an understanding of consumer engagement, because "member experiences are important”.
He also cited the importance of embracing new technology, while being able to comprehend all the legal and compliance aspects of a running a scheme.
Administrative skills, having the right qualifications and being able to manage advisers and meetings are also vital, said president of the Pensions Management Institute Robert Branagh.
'Very onerous, but very interesting'
Stephen Tiley, an interim pensions manager, warned that “lay trustees can be an easy target for consultants, and part of a pensions manager's job is to differentiate between what needs to be done and those projects that might be 'nice-to-haves' but potentially a disproportionate extravagance”.
Visavadia said that the role has changed quite significantly over time, partly due to a focus on improving data quality, coupled with the development of a broader range of investment products and risks.
Most scheme managers are in-house and appointed by employers rather than the pension scheme directly. Visavadia has found they often have to work with very limited resources, and can then become far more reliant on their advisers to help formulate a journey plan for the scheme, for example.
Source: Alexander Lloyd, Pensions & Benefits Salary Survey 2016
Branagh agreed that “it’s getting to be a very onerous, but very interesting job for someone”.
He noted how 10 to 15 years ago, pensions managers tended to work either for the trustees or the employer.
However, “they’ve got into this position where they’re doing so much that it’s been difficult to tell... how they should support each of those two bodies”, he said.
Similarly, David Brooks, pensions technical director at consultancy Broadstone, noted how scheme managers often “have to wear a couple of hats” and “those lines can get blurred”.
Brooks said: “The most effective pension scheme managers are those that have come from a third-party consultancy background.”
This is because they know how the various providers function. Some pensions managers “get too worried about the detail… they don’t trust the administrator, and so they’ll end up doing the calculations as well”, he explained.
What to consider before buying in-house skills
As pension schemes have become larger, more are thinking about how to cut out the middleman and hire internal specialists to handle their assets. But getting, and keeping, your own investment staff is by no means always straightforward.
Branagh acknowledged the advantages of a consultancy background, which enables someone to experience working with a range of different clients.
However, “you couldn’t underestimate the practical experience you get from working in-house” because “you get to see pretty much all aspects of the pension scheme’s lifecycle”, he said.
Is the hunt for talent getting harder?
Visavadia said finding the perfect pensions manager who has the relevant experience, fits the myriad requirements and can handle the amount of complexity involved is not easy.
“I think they are a dying breed,” he said, noting that incentivising younger people to work towards becoming a pensions manager might be difficult.
Branagh said “The amount of change happening in the pensions world means that someone needs to be the glue between the members, the regulatory environment, and the trustee body who are overseeing the scheme.”
He added that people should be more interested in becoming a pensions manager because of the breadth of the duties. "The variety of the role is particularly interesting for someone who’s a generalist,” he said.
