Pension funds are increasingly looking to provide modernized member experiences, improved information security, and streamlined fund operations. The road to providing these enhanced services is often through the adoption of new pension administration system (PAS) replacements. To get the greenlight for a new PAS implementation, it is necessary to present a comprehensive business case that can justify the investment and measure success both during the implementation process and post-implementation.
Understanding Costs Will Drive Success
One of the most critical factors to consider when building a business case for a new PAS is understanding the overall organizational costs. These costs will be driven by several factors, including the number, complexity, and variety of plans that exist in the legacy PAS, vendor configuration abilities, data integrity, and the number of internal and external systems to be integrated. Testing participation is also essential, as early creation of test scripts enables effective and efficient testing throughout the program for maximum quality. Allocating the right operations and IT resources to the project, clarifying key details like plan rules, forms, must also be considered to ensure project success.
Accelerating Member Interaction
The increased member service and process automation are significant benefits that pension funds look for when considering a new PAS. Streamlined operations are expected to reduce manual work by staff members, but a new PAS should be seen as a primary element of broader process simplification and member service improvement efforts. Public pension funds should consider using a qualified strategy and process consultant to help quantify the benefits of modernization. High-value member interaction types, including providing accurate retirement benefit estimates, simplifying frequent updating transactions, and allowing members to apply for benefits without multi-page forms, should be highlighted in your business case.
Secure omnichannel servicing, knowledge transfer, operational resiliency, and staff productivity and satisfaction are other benefits that can support your business case. Public pension funds need to ensure that the new PAS provides easy integration with members’ devices of choice, improves efficiency, processing consistency, and mitigates the negative impact of retiring staff. For the complex technology needs of the new PAS platform, including information security, pension funds should look to the PAS vendor and cloud service providers to safeguard operational resiliency.
Reaching Your Destination
Pension funds must build a comprehensive and accurate business case to justify PAS modernization and measure its success over the long term. It is essential to align key internal operations and IT resources to build the correct future state to achieve broader organizational buy-in and define the highest value achievable from a new PAS replacement journey. An improved, modern PAS can help pension funds enhance member experience, ensure trust and security, and streamline fund operations. A thorough understanding of the benefits, costs, and organizational constraints is essential for a successful implementation. With this knowledge in hand, the road to success is sure to be a smooth one.
