APTIA PENSIONS ADMINISTRATION POD EPISODE 2

Malcolm Reynolds

Gareth, thank you for joining us here today in Aptia’s offices in central London. It's always good to see you and have you here with us. 

We're going to talk about our collaboration, our brand new development that we've got for pensions administration qualifications, working very closely with the PMI. So let's get into it. 

When Aptia launched as an independent company in 2024, we set out to raise the bar for pensions administration and particularly pensions delivery. 

We took on that responsibility because we are the largest private sector pensions administration business in the UK. And pensions administration is at the heart of what we do. We don't do anything else, we're not an add on, and we don't have any add-on services. 

So, this gave us the chance to really address what has troubled me for some time. And that's the decline of learning and development in our industry. 

Now, when I joined the pensions industry about 35 years ago, a long time ago, I know, it was part of your career development. You had to start professional qualifications. It was, in fact, written into your contract. 

And the business that I worked in at that particular time expected you to pass those qualifications within a certain period because it set the bar for everything that you did for that firm going forward. 

And I think this industry has lost its way a little bit. There's too much on-the-job training now, rather than fulfilling those professional qualifications. 

So we approached you, the PMI, to collaborate on an evolved qualification, for pensions administration, that will also set the benchmark for this industry.

Gareth Tancred

Thank you very much for the invitation to be here, Malcolm. It's always a pleasure to meet up. 

I'd like you to talk a little bit more about why now? I mean, you mentioned about the length of time you spent in the industry and the way that training and qualifications used to be done. 

Why is now the time to make this investment? Because you're basically going against the grain a little bit. Over the last few decades, companies have been very focused on on-the-job training rather than qualifications. Why now?

Malcolm Reynolds

We are helping more vulnerable people as the population changes. Many of the people we serve today are retired, and we'll be looking after many of them into their 80s, into their 90s, and even into their centurion years for some people. So they'll need that extra little bit of help. That extra bit of personal touch. 

We're also helping an increasing number of members’ dependants. And our data shows that 35% of them are aged 80 or over when they first contact us about their loved ones’ pensions. 

Investing in qualifications also makes great business sense. The UK has suffered from an underinvestment in technology and skills for more than a decade. That's partly why the country has seen such low productivity. 

And pensions administration has its own problems, because it has taken a backseat to consulting time and time and time again. 

We have the opportunity to buck that trend, making our business more efficient, more productive whilst transforming the service that we offer. 

And we all know there's a knowledge drain in our industry, as some of the people that have been in this industry for quite some time are now looking to retire. 

We want to fill that knowledge gap, especially with colleagues that have been with us for a few years but haven't had the opportunity to take any qualifications for quite some time.

Gareth Tancred

You mentioned technology. How does this investment in people sit in a world where technology is expected to take on more and more tasks?

Malcolm Reynolds

Technology is essential, but it's our people that make the difference. At Aptia we believe that the future of the business is about people and technology working hand-in-hand, not one replacing the other. 

The best technology in the world is useless without the expertise to use it effectively. And we're using AI and automation to do the basic tasks. We're freeing up our people to use their knowledge and skills where it really matters, and that's in supporting members. 

In fact, technology can be a double-edged sword. It can cause people to switch off and rely on tech without understanding why they're doing something, or thinking about the impact that it may have on the person they're serving. You know – that “computer says no” syndrome. The qualification that we're setting up together will make sure that our people always have the questions “Why am I doing this? What is the impact on the member? How do I do this better” in the forefront of their minds. 

Use of technology and people is always a tricky balance. You know, Gareth, the use of smartphones by people aged 65 or over increased from 40% in 2016 to 77% in 2023 – a huge increase. 

But converse to that, there's more than one-third of over 65s that still struggle to use the internet. And you know what? One in six aren't even online at all. So we've got to cater for everybody's needs. Those that use the digital route, those that don't, those that struggle. 

We've got to have a complete mix of how we deal with people. So even when everybody over 65 has gone digital, which I don't think will ever happen but let's assume it does, pensions is still a people business. We still need the best people to deliver the service that our members expect. 

Turning to you, how will creating this evolved qualification influence how the PMI structures and delivers its training?

Gareth Tancred

At the PMI we're committed to ensuring that future pensions professionals and leaders have the very best technology and leadership skills to help them deliver high-quality transformational pension scheme management well into the future.

 Schemes that will need to adapt to support the financial needs of savers well into the future. So to do that, we're developing things like structured learning curricula. We're adapting our qualifications to make sure they align to modern ways of working, but also modern ways of learning as well. 

We're investing heavily into learning technology. We're creating on-demand learning programmes. And we're increasing our support because, as we deliver more and more education and qualifications across the globe, we need to make sure that people can be supported wherever they are on the planet.

Malcolm Reynolds

And from the PMI’s perspective, what's the opportunity to use this transformational qualification in the wider industry?

Gareth Tancred

Evolving the qualifications is vital, so that we can demonstrate a commitment to working with industry but also staying at the forefront of industry. We want to play a part in raising standards. We want to help create new benchmarks. And we want to improve the content and the relevance of the qualifications that we offer. 

We feel that by doing this, we can really help to support the industry in the best way possible. And we can make sure that those in it are being trained as effectively as possible. 

And you know, Malcolm, I know from our conversations that Aptia want to help raise that bar as well for the wider industry. I know that between us and our teams, we're discussing how this qualification can become a model or a template for others across the industry as well. In order to facilitate that, we're having conversations with other pensions admin organisations to get a broader buy-in for that very reason. 

We're serious about this qualification becoming the industry standard. So it makes sense to get others involved at this early stage.

Malcolm Reynolds

You know what, Gareth? I think you're right. We see this as a competitive advantage for our business, but we also want to set a standard for others to follow. If we do that, everybody in the industry gains, which has got to be good for our industry, right?

Gareth Tancred

Absolutely.

Malcolm Reynolds

Ultimately, pensions administration is about serving members. How do you think our initiative together will improve the member experience?

Gareth Tancred

At the PMI, we fully appreciate that pensions admin isn't just a back-office function, though I know many do see it that way. We believe that it directly affects millions of people's daily lives and also their financial futures as well. 

If it's done well, when members get clear, accurate, relevant information about their pensions, that helps them now, today, and also helps them plan for the future. If it's done poorly, mistakes can be stressful, cause anxiety, and they can be costly. And we know that errors are a huge source of dissatisfaction amongst scheme members. 

So, by investing together, we can better align the type of professional training that we offer at the PMI and that can help the wider industry address that question you were talking about earlier – not just of how we do things, because we can train people how to do things, but it's why we do things. 

And we believe that that will lead to a far more empathetic experience. Let's remember that people are talking to administrators very often at a difficult stage in their life. So we believe this education programme will not just help administrators make fewer errors and respond faster but also help them to empathise with scheme members more. 

And we believe that will lead to a far better experience for scheme members overall.

Malcolm Reynolds

I totally agree. Everything you say there, I totally agree with you. 

There's great synergy between the member experience and investing in our people. I can see that clearly. We want our people to be proud of the work that they do and to be proud of the profession they're in, because pensions administration is a profession. There's no doubt about that. 

If our people are motivated to go the extra mile to solve problems for members and they have the knowledge and skills to do so, we will be a much better business. 

Our industry is in a constant battle to recruit and hold onto the best people. By recognising and investing in our people, we will differentiate ourselves to attract and retain the most talented people in the industry. 

And if we have the best people that will feed through to benefit our pension scheme clients and their members – and this is what it's all about.

Gareth Reynolds

I couldn't agree with you more, Malcolm. At the PMI, our central mission is empowering change through education, and we are dedicated to supporting and developing the experts that manage and run today's pension schemes. We're committed to fostering industry collaboration. We're part of driving innovation that will enhance retirement outcomes – and the strategic partnership that we have between us, Malcolm, between Aptia and the PMI, is part of that drive. 

We want to work with industry to continually improve our qualifications and our education programmes. We want to raise standards across the industry. We want to innovate to provide better outcomes for people. And as you say, that's what it's all about: providing better outcomes for people.

Malcolm Reynolds

Sounds great to me. And this partnership - it's just the beginning, right? 

Over the next few years, we'll be embedding the PMI training across the whole of Aptia. We’ll be ensuring that every administrator has access to the best possible professional development. We'll also be sharing insights from our journey, helping the wider industry understand why investing in training leads to better outcomes. 

Long term, we want this to be a catalyst for change. We want to ensure that we're encouraging the industry as a whole to prioritise professional development in pensions administration. 

So, Gareth, you've seen how excited our colleagues are about having this qualification. Of course, it's not just about the colleagues and the development time and the investment in them. It's about the governance that we wrap around this as well. 

Did you see the excitement when you've been to our offices and you've seen some of the people? Do you see excitement – that people are really wanting to engage with the PMI?

Gareth Tancred

I did, yeah. And again, coming out to India and just having the opportunity to talk to people, you know, was part of the journey for me. Look, we all know how hard it is taking professional exams. It can take many, many years. We have to appreciate that people have busy working lives. People have family lives as well. And maintaining that balance can be so hard.

Malcolm Reynolds

Yeah.

Gareth Tancred

You then throw professional qualifications into the mix as well. And again, for us that's one of the motivators. How can we help people through this professional journey but not take up take up such a huge chunk of their life and help them to get on with the important stuff? 

So, as we've developed the CPC [Certificate in Pensions Calculations] exam, the new CPC, you know, we're hoping that it can be completed in 18 months rather than 36. We'll condense the modules; we’ll provide far better learning, bite-sized education, video, audio. 

It'll be a fantastic new experience for learners, and we hope to see the capability of admin firms like Aptia increase significantly in the very, very short term as we drive new standards.

Malcolm Reynolds

Quite right. This is about raising the bar isn't it? And the good thing for me is we've got people that have been in this industry a long time, who are a bit more mature perhaps in their years. They've never really taken professional qualifications, and to try and encourage them to do professional qualifications now is quite difficult. 

So, we seem to have got a solution to that – do you think?

Gareth Tancred

I think so, Malcolm. I mean, like you, I qualified many, many years ago. The thought of doing those professional exams again is daunting. Would I want to start something right here? I wouldn't even want to take my driving lessons again – I’d probably fail. 

It's very important that we recognise that there are people in the industry with years and years of experience, and we don't want that to go unnoticed. So as well as all of the qualifications that we have, we also provide recognition for people with that experience. 

A few years ago, we launched what we call the experienced member grade [EPMI], for people across the industry. But as we've been innovating around this particular project, we've also considered how can people in the admin sector with experience in admin, how can their experience be recognised as well?

Malcolm Reynolds

Yeah.

Gareth Tancred

So, as well as recognising those with wider experience across the industry, with the EPMI, we can also recognise those with admin experience with a specific grade as well. 

Malcolm, from your perspective, what does success look like for you? How do we help you deliver that?

Malcolm Reynolds

We want members to have a really good experience of dealing with Aptia and that they talk about that so they are promoters of our service and they go away understanding what decisions they have to make, why they have to make them and when they have to make them. We want people to go away with good outcomes. 

And that's why we're doing this: good outcomes for members, good qualifications for our people. 

Gareth, thank you for joining us. It's great to host you. Great discussion. Let's continue this collaboration and let's change this industry.

Gareth Tancred

Look forward to it, Malcolm. Thank you.