Pension Administrator: Job Profile and Role

A perfect pension scheme is important. In fact, you should start looking into it as early as possible since paying into it and receiving the consequent benefits will help you after you have retired. As is the case with such schemes and insurances, it takes an expert to help you along this administrative minefield. One such expert is a pension administrator. Equipped with a range of different skills, he or she gives support and manages pension schemes.

What it takes to become a pension administrator in the UK is one of the things we look at in this blog. If you think about working as a pension administrator, you will also be interested in your annual salaries, your potential employers, and what your typical working day will look like. This, we will explore alongside valuable tips for your continuous professional development and thriving in this profession.

Short Summary

• As a pension administrator, you support your pension scheme’s members. Here, you listen to their worries and give helpful advice on pension benefits and the available options.
• As a pension administrator, you calculate the benefits for the members of a pension scheme. Important factors to consider are their respective salaries and the length of their membership.
• As a pension administrator, you must comply with all legal frameworks and regulations, thus ensuring that pension schemes adhere to data protection laws, auto-enrollment and more.

Job description

Working as a pension administrator involves several daily and regular tasks. These can range from answering customers’ queries by email and phone, and even by letter. Being versatile with a computer and the relevant software is, therefore, an essential skill to have. Besides, a pension administrator is responsible for calculating how much money customers applying for pension benefits will receive. This also involves monetary transactions and management, while always keeping all legal requirements like tax laws at the back of the mind. Furthermore, as a pension administrator, you participate in regular trustee meetings where you update the trustees on the latest pension schemes and offer helpful training and support.

Responsibilities

• Trustee Support
• Record Keeping
• Member Support
• Risk Management
• Financial Reporting
• Benefit Calculations
• Administration Efficiency
• Member Communication
• Investment Management
• Enrollment and Contributions

Different types of Pension Administrators

• Self-Invested Personal Pension Administrator/SIPP
• Auto-Enrollment Pension Scheme Administrator
• Defined Benefit Pension Scheme Administrator
• Master Trust Pension Scheme Administrator
• Personal Pension Provider

Salary

When starting your job as a pension administrator in the UK, you can factor in an annual salary of around ￡19,000. With experience, this can increase to ￡25,000. Note that these numbers refer to full-time employment, whereas you will earn less when working part-time. Your form of employment and your experience are only some of the things that affect what you earn. You should always keep in mind that the company size as well as your location decide on your annual wages as well.

Working Hours

The job of a pension administrator is mostly office-based and requires between 37 and 39 working hours per week. Depending on the company you are working for, you may be asked to work shifts which can take place in the evenings and at the weekends as well. An increase in your working hours can furthermore be expected when you are dealing with complex pension schemes or when you are asked to attend and/or conduct training sessions for your organisation’s trustees. 

Employers

After you have finished your education or when applying directly for a job, you can find employment with financial institutions like banks and insurance companies. Equally, you can look for job openings posted by government agencies, pension funds, pension consulting firms, and so-called third-party administrators (TPAs). 

Resume Keywords that Unlock Your Success

Your resume is one of the most important parts of your job application. To stand out and attract your future employer’s attention, you should enlist the following seven resume keywords essential for pension administrators:

• Administrative planning
• Pension administration
• Financial statements
• Customer service
• Plan Funding
• Benefit plans
• Compliance

This way, you show that you know what your future job is all about and that you take your role and responsibilities seriously.

Qualifications

Technically, enrolling at a university to do a financial management course is not mandatory to work as a pension administrator in the UK. This is, however, an option, but not the most important one. Generally, most pension administrators have completed an apprenticeship or a college course. 

These two approaches come with a set of entry requirements in the form of GCSEs. For a college course, you will need two or more GCSEs at pass grades 9 to 3 (A* to D) or four to five GCSEs at pass grades 9 to 4 (A* to C). The lower grades qualify you to enter a level 2 course, whereas you will need the higher pass grades for level 3 courses and T levels. 

These grades are also mandatory for starting an apprenticeship. Keep in mind that relevant subjects like English and maths have been a part of your GCSEs.

Skills

As a future pension administrator, you should have excellent customer service and communication skills. We are certain that these competencies will show up in any job post’s skills section. Nevertheless, always carefully check what is expected of you before you start applying for a vacancy. That said, we now look at three more skills a pension administrator should have or develop.

Keeping Calm in Stressful Situations

As is the case with any customer-based job, being a pension administrator can be stressful at times. Be it a customer with a lot of questions or a customer who is (slightly) freaking out about a pension scheme – keeping calm and keeping a clear head is essential to tackle these situations professionally. Level-headedness and stress resilience will also help you during peak times and when handling complex cases and trying to get your head around all legal matters and frameworks.

Persistence and Determination

Being persistent and determined are two more qualities that should be a part of your competencies setup. You will be dealing with complex frameworks and schemes that can be challenging. There will be times when you will want to chuck it all in because the complexity and obstacle-jumping posed by official bodies will quite literally do your head in. If you have persistence and determination, you will not be easily fazed by these things. This will make your working life easier and contribute to your professional conduct.

Sales Skills

Yes, you have read that correctly. As a future pension administrator, you will need strong sales skills. You not only advise people on the right pension scheme, but you also need to sell the said scheme to make a profit for your company (and maybe even a commission for yourself). Therefore, knowing how to sell your product in a professional manner will be essential for you to perform well and succeed in your job.

Career Path

The first step on your career ladder in pension administration tends to be your entry-level position, for example, as an assistant pension administrator or junior pension administrator. If you want to fast-track your career to advance to managerial and more senior positions, you should look into training and qualifications. These can propel you to the position of a team leader, a pension supervisor, or a pension manager. It is also possible to look into starting your own business and offer your services in a consultancy capacity.

Educational Background

You can choose between three typical approaches to becoming a pension administrator in the UK. Be it a college course, an undergraduate degree, or the completion of an apprenticeship – all options have their advantages and can benefit you in both applying for a job and working in this field. Let’s take a look at what choices you have education-wise.

University Course/Undergraduate Degree

One of the biggest advantages of completing a university course is the degree you earn at the end of it. Most employers value a Bachelor’s degree which can also set you up for a postgraduate degree like a Master’s degree. Appropriate fields of study for becoming a pension administrator are:

• Administration
• Business Studies
• Financial Management

Apprenticeship

While an academic approach imparts theoretical knowledge above all else, an apprenticeship also offers practical insights and experience. For future pension administrators, the following apprenticeships are interesting options:

• Workplace pension administrator advanced apprenticeship
• Financial services administrator advanced apprenticeship

College Course

If neither university nor an apprenticeship appeals to you, you can look into the following college courses:

• Level 2 or 3 Diploma in Business and Administration
• T Level in Finance

You can start a T Level course at the age of 16. It usually takes two years to complete.

Entry Level

Typical entry-level positions in pension administration include the job of an assistant pension administrator and the job of a junior pension administrator. These jobs give you the chance to learn the ropes of this profession. To get valuable insights, you should “shadow” a more senior colleague. To improve your professional setup, you should also look into training, qualifications, and certifications. 

Continuous Learning

Professional qualifications earned through training with official and accredited bodies are a surefire way to advance your career and improve your hard and soft skills. As a pension administrator, you should study the training options offered by the Chartered Institute of Personnel and Development (CIPD), the Chartered Institute of Payroll Professionals (CIPP) and/or the Pensions Management Institute (PMI). Here, you can earn the following qualifications:

PMI:

• Retirement provision
• Pensions trusteeship
• Technical pensions administration
• Pensions and other employee benefits stream

CIPD:

• Staff retirement scheme
• Training on defined contribution (DC) schemes
• Training on defined benefit (DB) schemes

CIPP:

• Certificate in pensions administration
• Recognition of prior learning (RPL)

A Day in the Life of a Pension Administrator

You already know that answering queries by phone, email, or letter is a daily task in the life of a pension administrator in the UK. Therefore, checking your different inboxes is one of your first responsibilities. Being a pension administrator requires performing further tasks, three of which we will look at in this section.

Pension Scheme Administration

Working in pension administration naturally involves a lot of admin work (the job name might already have given that away!). Therefore, you will spend several hours a day reviewing pension schemes, checking numbers, reading reports, and adjusting existing pension schemes accordingly. You will also prepare new reports that detail fund performances, membership stats, and the allocation of investments made by both employers and employees.

Transaction Processing

Processing transactions are another part of your daily life in pension administration. You need to check all incoming contributions and fees made by individual members or corporate employers. This task goes hand in hand with updating member records where you adjust details like employment status and potential changes/updates in their salary status.

Project Work

To attract new members and offer existing ones exciting options, pension schemes undergo changes and updates. As a pension administrator, you need to be both aware of these and know how to apply and sell them. These things tend to be covered with the task of project work. Here, you check new pension schemes and implement them into your existing schemes. You may also need to work on transitions into digital systems like automated systems. This can involve collaboration with other departments, such as IT and finance.

Tips for Thriving as a Pension Administrator

Your continuous professional development (CPD) is one important aspect if you want to thrive as a pension administrator. Improving your soft skills is equally essential. What other ways will help you thrive is what we are looking at in the following lines:

• Attention to detail
• Technical expertise
• Client service orientation

Attention to Detail

Strong attention to detail is crucial – not only for thriving but also for keeping your job. Be meticulous and thorough when drafting pension schemes, calculating and paying benefits, and processing pension benefits. The same applies to keeping and maintaining the associated records. The more meticulous you are, the more professional and successful you will be (and be seen).

Technical Expertise

When working in pension administration, you will use a number of pension software systems. These can include anything from payroll software to accountancy systems. If you want to succeed and thrive, you should familiarise yourself with some of the following systems and software: Capita, Trafalgar House, Altus, and Aquila Heywood. Besides, you should have expert knowledge of pension schemes like defined contribution/DC and defined benefits/DB as well as auto-enrollment and pension calculations.

Customer Service Orientation

Taking on board your clients’ questions, worries, and expectations is another vital asset to have in pension administration. Your ability to provide excellent customer service should be accompanied by a high level of empathy and understanding as well as active listening. However superfluous a question or request might seem to you – to your client, it is one of the biggest worries when it comes to pension benefits. By always keeping an open mind and being intent on helping, you will perform brilliantly and thrive in your profession.

Frequently Asked Questions