Succession Planning for In-House Pension Management

1. Documenting key processes and knowledge transfer

Many in-house pension functions depend heavily on the historical knowledge of a single individual. To maintain continuity and strong governance, we have helped in-house teams to document policies, procedures, and key decision-making processes. Using a centralised knowledge hub can also help track compliance deadlines, scheme governance structures, and key contacts to help understand the succession planning requirements.

Existing processes can be evaluated in-house to identify gaps in documented knowledge, with practical solutions developed to integrate, where possible, with the team’s existing resources. It can often be useful to add an objective perspective, to help build a foundation for the pension manager succession including looking at alternative options available within the wider team alongside the potential for outsourcing as part of the Company’s overall resource management.

2. Hiring and onboarding a successor

Ideally, a successor is identified well before a pension manager’s departure, allowing for a structured handover period of six to twelve months. This ensures a smooth transfer of knowledge, introduces key stakeholders, and safeguards business continuity.

Finding the right candidate for this niche pension role can take time. Designing an effective interview process and structured onboarding is crucial, particularly as these roles often fall outside the expertise of internal recruitment teams. Where internal succession is the preferred route, a clear assessment of team structures, skill gaps, and backfill requirements is needed to help shape a sustainable long-term plan.

We have found that an objective perspective, along with tools and templates, enables in-house teams to navigate the process more efficiently. By alleviating the burden of this time-consuming task, the in-house team can stay focused on the day-to-day, while still allowing management to retain control over key decisions in selecting the right candidate.

3. Outsourcing pension management functions

The role of the traditional in-house pension manager is increasingly being outsourced. Third-party consultants, governance specialists, or fiduciary managers can oversee key responsibilities, such as scheme governance, regulatory compliance, and employer/trustee liaison, removing some of the traditional pension manager duties.

There is also the potential to fully outsource the role, where the service, for example, acts as a bridge between the Trustee Board and the Company, including managing budgets effectively and supporting HR teams in enhancing member engagement. There are a number of different outsourced models and understanding where the role fits within the wider risk management and governance framework is key to ensuring companies navigate any move to outsourcing as smoothly as possible. 

4. Interim support during transition

Finally, where it isn’t possible to enable a structured handover period, bringing in an interim professional can provide immediate expertise and adaptability, ensuring smooth scheme operation without the pressure to rush a long-term hiring decision. Whether covering a vacancy, managing a project, or supporting a team through a transition, an interim professional can offer a flexible solution that maintains momentum and governance integrity during periods of change.

At Pi Partnership we believe that in-house pension management succession planning should be as robust as that of trustee roles. Whether through structured handovers, internal development, outsourcing, or interim solutions, businesses must proactively prepare for pension manager transitions. By addressing this often-overlooked area, businesses can ensure continuity, compliance, and the long-term health of their pension schemes.