Time for a New Standard in Pension Administration
In 2013, Findley Davies participated in 15 pension administration request for proposals. All of these companies were administering their pension plans without sophisticated pension systems or call center or internet technologies that are typically found in an outsourced solution. The proposals inquired about outsourcing capabilities and features as well as associated fees. I asked why they had not previously considered outsourcing and the most common reply was, “It’s too expensive,” and “That’s more work than our department can handle right now.”
I can understand that comment. Many of the popular outsourcing platforms that exist today were created in the mid-90’s when outsourcing grew in popularity — and the cost to develop and maintain these platforms was expensive. Only very large companies who realized the value in improved employee communications, mitigated risk, and reduced internal resources dedicated to the pension plan could afford these services. All others either remained with their old platforms or adopted a hybrid outsourcing solution that was less expensive, but offered very little customization.
What I find intriguing is the technology used to run these platforms has changed considerably as the hardware and software have become exponentially cheaper and more powerful each year. There are a few firms — like Findley Davies — who are setting a new standard in outsourced pension administration services by making the investments, using more efficient technology, and passing the efficiencies on to our clients.
In fact, here are a few of our business statistics from 2013:
- 6 new clients;
- Length of conversion:
- Shortest: 43 days
- Longest: 138 days
- Average: 106 days
- $0 in conversion fees;
- 84% first call resolution;
- 90% of calls answered in 40 seconds;
- 96% of cases resolved in 2 business days; and
- Fees well below market rates.
We believe this sets a new standard.