Almost half (47 per cent) of pension scheme managers are working additional hours to keep up with their workload, research from Barnett Waddingham has revealed, with trustee support resource highlighted as a key challenge for pension schemes.

The research also found that just 16 per cent of managers feel they have the expertise and resource available to deliver additional technical projects.

Given this, nearly two thirds (61 per cent) said that they would look to seek external resources to deliver these projects, such as third-party pension and executive management services.

However, nearly a quarter (23 per cent) would try to delay their projects, while almost a third (32 per cent) said they would opt to ‘struggle on’ and accept they can’t finish everything.

Trustee support resources were also highlighted as the biggest challenge facing pension schemes over the coming months, cited as a concern by 39 per cent of respondents.

This was followed by trustee board skills, effectiveness, and succession planning (35 per cent), and administration data, delivery quality, and member experience (32 per cent).

Indeed, Barnett Waddingham highlighted the findings around succession planning as "concerning", revealing that one third (33 per cent) of pension scheme managers admitted to having done no succession planning.

Instead, almost half (49 per cent) have a relationship with an external pensions resource, to help fill the short-term gaps and build a long-term strategy, while 25 per cent expect to employ another person, and a further 21 per cent would look to find someone from the company to fill any gaps.

The survey also looked at how teams are keeping up and maintaining trustee knowledge, revealing that a third (33 per cent) learn on the job, 37 per cent attend adviser seminars, 35 per cent are supported in doing professional exams, while almost half (49 per cent) have external governance advisors.

Other challenges cited by respondents included The Pensions Regulator's new code (28 per cent), adviser reviews and replacements (23 per cent), and strategy setting (21 per cent).

Barnett Waddingham senior pension management consultant and principal, Christine Kerr, stated: “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 defined benefit 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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