A Retirement System An Executives Perspective

1
A Retirement System An Executives Perspective

• CEO Gail Stephens from the B.C. Pension
  Corporation

2
Overview of the Session

• BC PENSION CORPORATION
• History
• Today
• Future
• How Information Technology plays a foundational
  role

3
About the BC Pension Corporation

• FAST FACTS
• The BC Pension Corporation is one of the largest
  pension benefit administrators in Canada.
• College, Municipal, Public Service, Teachers,
  former Members of the Legislative Assembly and
  the Workers Compensation Board Pension Plans.
• More than 400 employees.
• Annual contributions over 1.6 billion annual
  benefits paid over 1.7 billion and financial
  statement reporting over 40 billion.

4
History

• BC PENSION CORPORATION
• Created in April 2000 from the former
  Superannuation Commission
• Under-funded for a number of years
• Struggled with more demand for services as more
  baby boomers retired
• Struggled with backlogs because staffing levels
  hadnt kept up with demand for services
• Adopted a joint trusteeship model of governance

5
History

• BC PENSION CORPORATION
• Acted as an agent of the boards and made the
  board members trustees of the funds
• Governance structure very unique
• CEO reports to more than 60 directors, trustees
  and trustee alternates

6
History

• BEFORE THE PENSION CORPORATION WAS OVERHAULED
• The Good, the Bad and the UGLY
• Limited funding staffing shortages huge
  backlogs
• Three years to respond to clients
• Three months wait for first pension check
• Unhappy clients
• Low employee morale

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History

• BEFORE THE PENSION CORPORATION WAS OVERHAULED
• Staff had to deal with disgruntled clients
• Antiquated and disjointed IT systems
• Buried in backlog
• Unhappy advisory boards
• Huge demand for services and low staff morale.

8
History

• OVERHAULING THE CORPORATION
• Management team and board of directors rolled up
  their sleeves and started to re-invent the
  administration of public sector pensions in
  British Columbia.
• The IT Division was already working on the
  Integrated Pension Administration System (IPAS)
  solution.
• At the time, it was the largest IT project in
  British Columbia worth millions of dollars 75
  people in the project team had an implementation
  schedule of more than four years.

9
History

• OVERHAULING THE CORPORATION
• Three year management plan with one over-arching
  ambition to make the pension experience easy.
• IT team moved from old technologies to new
  technologies.
• Strategic plan staff training staff
  recognition becoming service leaders building
  relationships with trustees visiting each area
  of corporation breakfast CEO sessions improved
  communications with staff performance measures
  where we consistently raise the bar.

10
Results

• BC PENSION CORPORATION TODAY
• The GOOD, the bad and the ugly
• No backlogs for service requests
• High satisfaction
• Recent retirees 98
• Employers 96
• BC PENSION CORPORATION TODAY

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Results

• BC PENSION CORPORATION TODAY
• Active members 85
• Reduced costs to 104 from 114 per member
• Plan Board Trustees 95 - 100
• Managed an expected 9 or greater increase in
  volume with no increases in staffing.
• Staff 11 increase in overall satisfaction from
  2002

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Results
THE BC PENSION CORPORATION TODAY
13
Results
THE BC PENSION CORPORATION TODAY
14
Results
THE BC PENSION CORPORATION TODAY
15
Results
THE BC PENSION CORPORATION TODAY
16
Results
THE BC PENSION CORPORATION TODAY
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Results

• THE PENSION CORPORATION TODAY
• The good, THE BAD and the ugly
• Implementation of IPAS was bad
• Entire manuals were written to address
• the bugs and work-arounds
• Today, its not so bad, and in the future, it
  will
• be much better.

18
Future The next five years

• BC PENSION CORPORATIONS FUTURE FIDUCIARY
  RESPONSIBILITY
• Reducing Risk
• Privacy
• Confidentiality
• Integrity
• Availability

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Future The next five years

• BC PENSION CORPORATIONS FUTURE FIDUCIARY
  RESPONSIBILITY
• Strong security program competitive business
  advantage
• Flexible architectural design
• Business continuity plans
• Consolidating our IT systems
• Simplifying our IT systems
• Loosely coupled structures
• Buying services

20
Conclusion

• Retirement is a growth industry.
• Continue to deliver our services in an
  environment based on trust, confidence, values
  and principles.
• Continue to simplify our business processes and
  our technology to accommodate the demands of our
  ever-growing clientele.
• Thank you.
• Questions?