How to Become a Pension Manager
May 20, 2009
Pension schemes are run by many different types of institutions and the pension manager is the person who actually managed the pensions.
The nature of work
Whether they are company pension schemes, benefits consultancy, insurance company, public pension schemes, or pensions run by large organizations, pension managers are needed to coordinate all the work of running and managing the schemes. The work requires quantitative and qualitative analysis of data, familiarity with pension plans and will require close work with internal departments. Knowledge of compliance and regulatory filings is necessary.
Among other things the pension manager has to:
- review pension data, including quarterly synchs
- identify trends, and remediate issues
- assist in preparation of annual regulatory filings such as PBGC filing and 5500s
- prepare pension payroll
- participate in ad hoc benefits projects
- assist with audits requirements
The training and qualifications
The pension manager should have a Bachelor’s degree preferably in related subjects like law, accounting, general finance management and business. At the pensions administration level, even a high school leaver can find work, and then advance through experience.
The pension manager has to have a high level of commitment to his work and be a responsible person. He may have to take investment decisions and so knowledge of the stock market and other investment products is a must. While he can find jobs, he can also set up in a consultancy firm, particularly if he wants to deal with pension schemes for the self-employed. He must have knowledge of the tax laws of the country he is practicing in.
Professional examinations provided by The Pensions Management Institute (PMI) in UK may help to develop a career in pension scheme and go to higher levels of seniority. While both men and women are to be found in this kind of career, at higher levels there are more men than women.
Earnings
In the UK the starting salary may be £14,000 to £18,000, team leaders can earn £18,000 to £28,000 a year, experienced pensions managers earn from £25,000 to £40,000 and senior pensions managers earn between £40,000 and £85,000 a year. This is the salary and then there are added benefits like insurance, pension benefits and bonuses.
In the US, salaries can range from $50,000 to $120,000, depending on years of experience, amount of work and designations as well as the type of organization you are working for.
Other resource:
http://www.prospects.ac.uk/p/types_of_job/pension_scheme_manager_entry_requirements.jsp
http://northwest.careers-advice.org/helpwithyourcareer/jobprofiles/JobProfile?jobprofileid=302&jobprofilename=Pensions%20Manager
As Chief Executive of a pensions trust that provides services to the staff of a major university, Penny oversees the management of £1.3billion in assets.
After graduating from Liverpool University with a degree in political theory and institutions, Penny got a position in personnel where her job developed to involve pensions-related work. After realising how much she enjoyed a job that combined technical and people-related elements, Penny studied for The Pensions Management Institute (PMI) qualifications.
In her current job she combines the roles, responsibilities and expertise of a pensions manager and company secretary.
‘I support the board of trustees, reporting all activities to them and bringing a variety of issues to their attention. I also support the investment committee with the work they do, for example, helping to appoint the investment manager and influencing committee decisions.
When asked about the demands of her work, Penny comments: ‘This is a fabulous job – I enjoy every minute of my day because it’s so varied. It’s a great combination between the technical aspects of the work and the impact of human nature, for example when dealing with death in service cases.’
For a successful career in pensions you’ll need to be well-organised and efficient and have an eye for detail. You must be a careful worker as mistakes can cost employees and trustees money. The ability to juggle different tasks is useful too! You need to be good at working within a team, which involves understanding what motivates people and you should also have a sympathetic approach to scheme members, which means being a people person.’
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