Are you contemplating whether to invest in a new pension administration solution? If so, this blog will provide you with compelling reasons why you should make a strategic investment in your IT infrastructure.
1. To satisfy your stakeholders’ demands for modern service delivery models
The digital technology revolution is changing how your members want to conduct business with you. This shift in expectations is attributed to the widespread adoption of customer self-service by businesses across all sectors of the economy. Your members expect real-time access to their information anytime, anywhere. While mobility and self-service are the prevailing trends for business to consumer interaction, some of your members still want to conduct business with you over the phone or in-person. In order to satisfy demands for increased access to information, you must implement a dynamic strategy that includes multiple communication platforms.
2. To quickly respond to policy changes
The pension industry is constantly changing. The Governmental Accounting Standards Board (GASB) is a catalyst for much of the change as it continues to improve financial reporting and standards. The pressure to be GASB compliant is evident in State Street’s 2014 international survey of pension funds. According to the report, “Regulatory compliance is top of mind for pension funds – 61 percent see it as high priority and 35 percent as medium priority.” On June 15, 2016, public pension funds around the country will have another mandate to comply with: GASB Statement No. 82. In order to respond to constant policy changes, you need technology with unprecedented flexibility.
3. To attract younger workers
There is a seismic shift occurring within the nation’s workforce demographics. Baby Boomers are retiring in droves and are being replaced by a much younger and more diverse workforce. Without modern technology that includes dynamic service offerings and streamlined business processes, pension agencies will struggle to deal with the workforce of tomorrow. According to the Center for State and Local Government Excellence, younger workers “Consider the availability of state-of-the-art technology in the workplace when considering a job opportunity.”1 Without modern technology, your agency may have a difficult time recruiting a young and highly talented workforce.
4. It’s fiscally responsible
Trying to conduct business in a digital age with old and fragmented technology is costing your agency undue expense. According to a 2015 survey of state CIOs, 80 percent or more of their budget is spent on maintaining existing systems2. Rather than making do with old technology, reap the positive financial rewards of a strategic IT investment. The initial cost of updating your technology is quickly recovered due to faster processing, business process efficiency and data accuracy.
5. To comply with security requirements
Protecting your members’ data is of primary importance, yet many pension agencies lack the technology to safeguard highly confidential data. According to the National Association of State Retirement Administrators (NASRA) “Most applications miss or insufficiently address the underlying security requirements resulting from standards and governance sources such as Federal Information Security Management Act (FISMA), National Institute of Standards and Technology (NIST), and Payment Card Industry-Data Security Standards (PC-DSS).”
When pension agencies don’t comply with security standards it can lead to major security breaches and hefty non-compliance fees. “Security vulnerability costs include rework (up to 100X development costs or more), non-compliance penalties (up to $3.5 million per incident for PCI-DSS), planned and unplanned downtime due to security patching and incidents ($1 million/hr average) and breach disclosure costs ($6.7 million per breach),” according to NASRA. In order to comply with security requirements, your system must have robust security architecture. Furthermore, it should have the capability to account for future enhancements when new security requirements are enacted.
Are you convinced that you need upgraded IT technology but are wondering how to achieve that initiative within your current budget and business constraints? If so, contact Sagitec for a free in-depth Pension System Assessment that will provide you with an analysis of your vision, systems, and data. Based on the results, Sagitec recommends industry best practices – including the time and expense to implement our software solution (Neospin™), mobile application (MOBIAS) and/or a member/employer web portal.
Do you want an analysis of your current IT infrastructure but aren't ready to contact Sagitec for an in-depth assessment? If so, take our free and quick Pension System Assessment to learn how your current system measures against industry best practices.
About Sagitec Solutions:
Sagitec Solutions, LLC designs and delivers tailor-made pension, provident fund, and unemployment insurance software solutions to clients of all sizes. With broad industry experience, Sagitec helps their customers achieve strategic business objectives, enhance service offerings, and lower operating costs. They are headquartered in the Twin Cities area of Minnesota. Further information can be found at http://www.sagitec.com or by contacting Rick Deshler at (651) 335-3406 or at rick.deshler@Sagitec.com.
1 Workforce of Tomorrow. (December 2015). Center for State and Local Government Excellence.
2 Making a Digital Transformation. (April/May 2016) Government Technology.