Almost half (47%) of pension scheme managers are working additional hours to keep up with their workload, according to a new survey. The study, which was conducted by professional services consultancy Barnett Waddingham, also found that just one in seven (16%) of managers feel they have the expertise and resource available to deliver additional technical projects. As a result, almost two thirds (61%) said they would seek external resources to deliver these projects, such as third party pension and executive management services, while a quarter (23%) would try to delay their projects or ‘struggle on’ and accept they can’t finish everything (32%).
The survey of pension scheme managers also delved into how teams are keeping up with industry governance best practice. 33% learn on the job, 37% attend adviser seminars, and 35% are supported in doing professional exams (e.g. with the Pensions Management Institute). Almost half (49%) have external governance advisors (e.g. the Barnett Waddingham PEMS team)
Thinking about succession planning, a concerning one in three (33%) of pension scheme managers have done no succession planning. Almost half (49%) have a relationship with an external pensions resource, to help fill the short-term gaps and build a long-term strategy. Others expect to employ another person (25%) and/ or find someone from the company to fill any gaps (21%).
When asked about the biggest challenges facing pension schemes over the coming months, respondents said trustee support resource (39%), trustee board skills, effectiveness, and succession planning (35%), as well as administration data, delivery quality, and member experience (32%) were among the top three issues they faced.
Other challenges included TPR’s new code, including Effective System of Governance (ESoG) & Own Risk Assessments (ORA) (28%), adviser reviews and replacements (23%), and strategy setting (such as end-game planning) (21%).
The survey highlights the pressures that pension scheme managers are under and the growing need for external support to help manage their workload while delivering complex technical projects. It also emphasises the importance of succession planning, which a significant amount of pension scheme managers have yet to address.
Christine Kerr, Principal and Senior Pension Management Consultant at Barnett Waddingham, said: “The future management of our pension schemes is uncertain. As we approach a transitionary period in the pensions industry, where increasing numbers of pension managers are nearing retirement, it’s clear many are still facing rising work pressures. As a result, we’re seeing a worrying amount of pension managers that have been unable to put solid succession plans in place to pass the baton to the next generation of managers. Furthermore, there are clearly a large amount who could simply use a service such as PEMS, to gain an extra pair of hands, and make their workloads more manageable.
“These challenges are especially prominent among managers working in the DB pensions space, where end-game planning is becoming more and more vital as the years progress. Whatever pressures are facing managers, serviced like Pension Management and Executive Services can form part of a structured and considered approach to pension scheme management and should be a serious consideration for those who are struggling. The skills and knowledge acquired of pension managers is invaluable and currently in high demand. We have several former in-house managers in our PEMS team. They bring a different perspective and pragmatism to the service we provide to our clients. That combined with our independence and the diverse expertise of the wider PEMS team makes us one of the leading and most trusted providers of trustee executive and governance in the market.”
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