Published by Blakes for more
than a quarter of a century
than a quarter of a century
Elliott Bauer
PENSIONS DIVERSIFICATION, THE WAY FORWARD
As a specialist pensions recruiter, we have seen the pensions industry go through some significant changes in the past and will no doubt see changes in the future.
The following, in our opinion, are key events that continue to define the evolution of the market:
. The falls in the Stock Market, which led to some serious financial difficulties for a large number of Defined Benefit (DB) schemes, highlighted by the implementation of a new accounting standard.
. The introduction of Tax Simplification, combined with the abolition of MFR and the proposed introduction of Scheme Specific Funding levels, will create additional work for actuaries and consultants.
. The 'Maxwell affair' which contributed to the legislation implemented by the Pensions Act of 1995.
. The pensions mis-selling of the late 1980s to early 1990s saw companies undertake a significant review of the advice they had given. The end of the review saw a disproportionately large number of candidates re-enter the marketplace.
Pension providers are aware now, more than ever before, of the risks they undertake with their pension schemes and, as a direct result, communication lines are clearer and more defined. We have experienced growth within the communications field that has led to specialists recruitment within actuarial consultancies, intermediaries and providers. We foresee further growth in this area and anticipate companies enhancing the use of software and the technology available by employing systems experts.
The trend away from Defined Benefit (DB) to Defined Contribution (DC) schemes requires specialist skills, with some actuarial companies now concentrating purely in this area. It is commonly acknowledged that DB schemes will be around for some time and therefore will still require the skills of the traditional pensions actuary.
Pension schemes now demand much more from their advisors and consequently consultancies have to compete at a higher level to gain or even retain their clients' business. The net result is companies offering a wider range of services to their clients and in turn demanding actuarial and pensions employees to be multi-skilled, strong communicators with the ability to diversify. One of the major areas of this diversification will be towards executive benefits, with the introduction of the government's Tax Simplification rules.
What does this mean for the pensions actuary, consultant and administrator? In our opinion, those willing and able to adapt to these changes will have improved long-term career prospects, as roles become more varied and challenging.
As a 'search and selection' consultancy, we have adapted to these changes and fully understand the implications, thus providing a more thorough screening of candidates. The higher demand for 'softer skills' has in turn allowed us to finely hone our search process. No longer does the attainment of qualifications guarantee that dream role for a candidate. Presentation, communication and project management skills are equally as important, and we are increasingly searching for these skills on behalf of our clients.
The following, in our opinion, are key events that continue to define the evolution of the market:
. The falls in the Stock Market, which led to some serious financial difficulties for a large number of Defined Benefit (DB) schemes, highlighted by the implementation of a new accounting standard.
. The introduction of Tax Simplification, combined with the abolition of MFR and the proposed introduction of Scheme Specific Funding levels, will create additional work for actuaries and consultants.
. The 'Maxwell affair' which contributed to the legislation implemented by the Pensions Act of 1995.
. The pensions mis-selling of the late 1980s to early 1990s saw companies undertake a significant review of the advice they had given. The end of the review saw a disproportionately large number of candidates re-enter the marketplace.
Pension providers are aware now, more than ever before, of the risks they undertake with their pension schemes and, as a direct result, communication lines are clearer and more defined. We have experienced growth within the communications field that has led to specialists recruitment within actuarial consultancies, intermediaries and providers. We foresee further growth in this area and anticipate companies enhancing the use of software and the technology available by employing systems experts.
The trend away from Defined Benefit (DB) to Defined Contribution (DC) schemes requires specialist skills, with some actuarial companies now concentrating purely in this area. It is commonly acknowledged that DB schemes will be around for some time and therefore will still require the skills of the traditional pensions actuary.
Pension schemes now demand much more from their advisors and consequently consultancies have to compete at a higher level to gain or even retain their clients' business. The net result is companies offering a wider range of services to their clients and in turn demanding actuarial and pensions employees to be multi-skilled, strong communicators with the ability to diversify. One of the major areas of this diversification will be towards executive benefits, with the introduction of the government's Tax Simplification rules.
What does this mean for the pensions actuary, consultant and administrator? In our opinion, those willing and able to adapt to these changes will have improved long-term career prospects, as roles become more varied and challenging.
As a 'search and selection' consultancy, we have adapted to these changes and fully understand the implications, thus providing a more thorough screening of candidates. The higher demand for 'softer skills' has in turn allowed us to finely hone our search process. No longer does the attainment of qualifications guarantee that dream role for a candidate. Presentation, communication and project management skills are equally as important, and we are increasingly searching for these skills on behalf of our clients.
Jane Crawley, Senior Manager Pensions Division, Elliott Bauer Ltd
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