Digital Transformation is definitely the rage du jour – and for good reason. Traditional business models have been assaulted as innovative companies radically improve performance and customer reach. Digital advances such as analytics, mobility, social media and smart embedded devices are changing business models, customer relationships, and entire value propositions.As we commence the 2017 Public Retirement Information Systems Management (PRISM) conference in Nashville (April 9-12) and their theme of “Pension Digitalization”, we are reminded that the US public pension funds continue to face some serious challenges and exciting opportunities in this regard.
Virtually every retirement system across the nation has engaged in pension reform over the last decade. Most reform is targeted at shoring up funding in response to the great recession and continued market uncertainty. Other reform was aimed – and must continue to be aimed at ensuring that much of the middle-class Americans will be able to retire with dignity.
Rapid technology changes have led to the fall and rise of entire workforces – not many view lifetime employment as a viable opportunity now. The average lifespan of a person has increased, which affects the fundamental rules of pension schemes. How Americans can plan their retirement better is a noble question and a target with monumental economic consequences on our nation. Yes, achieving that goal requires increased financial sophistication and new products (State-sponsored IRAs and Savings plans – wink, wink) combined with purpose-driven leaders that are passionate and persistent.
Use of advanced technologies
Improve processes and decision making
Increase efficiency
Educate members for better retirement planning
Many states are taking the necessary steps to become more digital and transparent. New Jersey recently signed a legislation which not only makes data transparency a requirement for all state agencies but also codifies the chief data officer position into state law.
The new Open Data Initiative aims to increase public awareness of and access to state agency data in order to enhance transparency and accountability, encourage public engagement, and stimulate public policy and public service innovation.
But much is still needed. Pension reform in the form of modernized IT systems is taking place, but what is required is a digital revolution; a new thought process requiring partnerships between governments, agencies and third parties to overhaul the pension value chain.
Do you have thoughts on how this can be achieved? I would love to hear them.
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Sagitec Solutions, LLC designs and delivers tailor-made pension, provident fund, unemployment insurance, and healthcare and life sciences software solutions to clients of all sizes. Understanding that a dynamic world requires dynamic technology, Sagitec offers solutions that are highly configurable and extensible by nature. With deep industry experience in software implementation and systems integration, project management, consulting, hosting and software support, Sagitec is a partner clients can trust to deliver mission-critical IT projects.