State Retirement System Modernization

A State Retirement System needed to modernize their aging retirement processing and payroll system. This included both a technology and business process transformation. The current paper-based manual processes were difficult to keep up with the ever changing legislative and customer needs. The agency engaged CapTech to assist with all phases of the modernization program from program management to functional design to development. The result was a modernized agency that supports automated processes and web-based transactions.

A State Retirement System needed to migrate from a decades-old benefits processing and payroll system to modernize both their processes and technology. The existing solution was a large, monolithic mainframe that relied on many manual, paper-based processes to serve members and retirees. New legislation and customer service requirements were difficult to implement due to the complexity of the single system. In addition, business rule knowledge resided in a few key Subject Matter Experts (SMEs) and risked being lost as those resources neared retirement age.

The State Retirement System needed a platform capable of:

• Supporting members' ability to submit retirements online rather than through paper forms
• Paying over 200,000 retirees their annuity payment each month, as well as the flexibility to disburse other benefit payments throughout the month
• Automating common tasks and allowing skilled analysts to spend more time on high-touch cases

The State Retirement System engaged CapTech to assist with all phases of the modernization program. CapTech provided program and project leadership throughout and was responsible for the management of the software delivery. Working with the Retirement System, CapTech implemented an iterative delivery cycle that allowed for key pieces of functionality to be delivered to the end users for validation well before the final implementation date.

CapTech provided key analysis and design during all phases of the program. Functional architects and analysts met with the Retirement System’s leadership to understand the guiding principles of the modernization program and used those to design a system that would increase automation, be easier to update with changes to legislation, and would support online retirements in the near future. CapTech analysts worked with business SMEs and end users throughout the program to document business rules, design the system to meet the growing needs of the population, support the users during user validation testing, and provide training leading up to and after implementation.

The Retirement System’s modernization program completed with new payroll and benefits processing systems that allowed the agency to better serve its customers and reduce the costs of manual, paper-based processes. Throughout multiple releases, CapTech helped implement:

• A new refunds processing system
• A single benefits calculation service that can be shared by other systems
• An updated customer-facing portal with enhanced security, retirement planning functionality, online refunds, and prior service processing
• A new benefits processing service for disability, health, and death benefits
• A new payroll system for disbursing monthly annuity and other non-recurring benefits
• Enhanced security measures, provided by an identity and access management solution that gives the right people access to the application without detracting from the customer experience

The resulting gains in efficiency and customer service have included:

• More than 117,000 members accessed the customer-facing portal to review or update account information 
• Nearly 8,000 members have requested an account refund online, with 99.7% of refund requests processed within five days of receipt.
• Previously, the average turnaround was 10 business days. 
• Members created over 313,000 benefit estimates online and over 50,000 online retirement plans in the last fiscal year. 
• Multiple staff members have been reassigned to positions in which they can work directly with members who need help with complex transactions or questions.