Positively Managed innovation

As president of the Pensions Management Institute, I am constantly asked how the PMI is transforming and adapting to the sweeping changes that have affected the pensions industry over the past decade. Clearly, the widespread switching from defined benefit to defined contribution has had a major impact on the PMI and its members, given that the institute was primarily established as a body for pensions professionals involved with DB schemes.

The current rate of change is rapid and until the dust has completely settled it is difficult to picture the pensions landscape ahead of us. However, the one prerequisite for keeping ahead of the field is flexibility. The PMI used to be run along somewhat rigid secretariat lines – an excellent basis for maintaining the status quo but perhaps too structured to enable creative development and advancement of services. Certainly, the old style PMI was not best placed to react effectively to some of the seismic changes that occurred in our industry at the turn of the millennium.

Things have definitely changed, however, with PMI becoming a sleek, not-for-profit business focused on delivering bang up-to-date services. Under PMI chief executive Vince Linnane and his excellent team, I firmly believe that a number of exciting and innovative changes – which are in our new brochure Achieving Pensions Excellence carried with this edition of Professional Pensions – have placed the PMI at the cutting edge of serving the pensions industry, PMI members and the trustee community. Over the past 18 months we have:

- Made our qualifications structure more logical and more “user friendly” – there is more choice, greater flexibility (that word again!) and a better integration of our vocational/professional/trustee qualifications so that a credit system shows exactly how these qualifications can build towards the PMI Advanced Diploma in Retirement Provision and APMI status.
- Introduced new on-line initiatives, not just for PMI members but for everyone working in pensions. These include two online communities – PMI Studentweb and Trusteeweb (both run in conjunction with Anthony Hodges Consulting). In May 2007, in conjunction with the Asset TV network, we launched PMI TV – our own webcast channel – with an interview with (then) pensions minister James Purnell. Seven months later with more than 10,000 hits and 1100 hours downloaded, it has proved immensely popular with all users.
- Established stronger links with major players within our industry. Firstly, by setting up technical sponsors of the PMI study manuals under the “Shaping the pensions professionals of tomorrow” initiative, which has improved their overall content and delivery. Secondly, by the PMI getting up to speed on its first ever commercial development programme, with companies wanting to partner with the PMI on a range of initiatives. The strength of the PMI brand in the market place can best be measured by the quality of the companies already working with us as commercial partners. This list includes (among others) Goldman Sachs Asset Management, HSBC Actuaries and Consultants, Xafinity Paymaster, Lucida and Capita Hartshead.

As you can see, PMI offers value to employers, individuals and trustees, and will be looking to extend and enhance its offerings to all three important markets over the next 12 months.

For individuals – PMI has always been primarily concerned with getting its students through its examinations and delivering to them the wider benefits of belonging to a professional body. These benefits – monthly PMI news magazine, PMI Technical News (quarterly) and technical conferences and seminars – also cover the provision of business networking opportunities to share ideas with others in similar positions and experiences. Many prominent pensions professionals have built their reputations and networks through PMI activities.

For employers – employing PMI members will give a competitive edge in a very tight market place. Holding a PMI qualification is an impressive benchmark of ability, with our APMI/FPMI programme the high water mark that can only be attained with hard work, professionalism and application.

For trustees – the PMI can develop trustees’ pensions knowledge and understanding so that they can better deal with the technical, regulatory and advisory challenges ahead. We also put trustees in touch with their peers, to share knowledge and experience.

If you didn’t know much about the PMI, I would urge you to spend five minutes looking through our brochure and seeing how PMI can help you improve your own knowledge, the overall knowledge of your company, or the extra skills your trustee board will need. It will be the best return on five minutes of your time that you will get all year!

Steve Delo is president of the PMI