Client Stories | March 4, 2021
Not all pension administration systems require replacement. If the underlying technology is still supported, you often save yourself time and money by modernizing your legacy system with up-to-date tools and processes. Understanding how to approach legacy system modernization can help you get a streamlined, future-proof system up and running at reasonable cost.
If you’re struggling with an outdated system, you might think the only solution is to purchase and implement a completely new system. This is not only expensive, but it also may not addresses the root causes of your current problems. Even if you have the budget to purchase a new system, this introduces new challenges you may not have anticipated:
A mid-sized state retirement system was experiencing issues with their legacy pension administration system, the support and maintenance they received for that system, and the uncertainty surrounding the ability to expand the tools available to users and members. The challenges the state was experiencing was causing them to think that they needed to replace the system.
This issue weighed heavily on the management and staff and so they engaged Segal to assess the system and provide a recommendation to keep and enhance the system, or go out to bid for an entirely new system.
We performed an analysis which
Because of our objective assessment of the state’s needs and our knowledge of the vendor market, we recommended they enhance their current system vs. going out to bid for a new system. We are currently assisting the state in implementing the modernization enhancements, which is projected to save them millions of dollars (compared to replacing the solution) and allow them to begin seeing improvements in functionality incrementally, rather than waiting for a multi-year project to complete. This effort has allowed them to maintain an important relationship with the legacy system vendor.
This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.
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