PMI Offers 2020 Vision of Role of Pension Manager
13 August 2012 (PLANSPONSOREurope.com) – UK plan sponsors will soon find the role of their pension managers evolves into a new professional discipline, according to The Pensions Management Institute (PMI).
The PMI says that the traditional role of the pensions manager may well evolve into something completely different by 2020.
Vince Linnane, Chief Executive of the PMI, said: “The changing role of the pensions manager is evidence of fundamental change within the pensions landscape. Pension provision has always formed a major part of the wider employee benefits package, but with automatic enrolment on the horizon and the ever increasing use of flexible benefit arrangements, the pensions manager role as we know it is likely to develop into a new professional discipline. The new role will require many professional skills that are familiar now, such as technical knowledge, effective communication to a very broad audience with a wide range of financial knowledge (or lack of it), a sophisticated understanding of IT systems and an awareness of the impact of changing legislation. However, in future there will be greater emphasis on the expanding options for remunerating employees, a requirement for better all-round management and leadership skills and a better understanding of a much wider range of financial products and markets (including investment options).
“Pensions has always been, and will continue to be, the hardest part of the compensation and benefits total remuneration package. However, there is a growing trend for the pensions and HR functions to be far more closely linked. With that in mind, it is most likely that the pensions manager of the future is to be even more of a multi-disciplinary professional and we are already seeing pensions professionals taking on greater responsibilities in this area. As an Institute for employee benefits professionals, we have for many years included as part of attaining our professional qualifications the requirement for an understanding of wider employee benefit provision. We have seen this trend continue to develop over the past decade and it is something that has been reflected in the changes to our Advanced Diploma syllabus."