Page updated 24/05/02
Extract from an article which appeared in Professional Pensions ~ 13 January 2000 ~ Reproduced by kind permission.WEST MIDLANDS PIONEERS FRESH
APPROACH TO SCHEME ADMIN
Professional Pensions Exclusive: By Jason Conway
West Midlands Metropolitan Authorities
Pension Fund has entered a ground-breaking
partnership with systems specialist ISE in a move which it hopes could
revolutionise
the market for local government pension systems.
The move concludes a lengthy and
rigorous search by West Midlands, in concert with
external consultants, to find a suitable partner to develop the systems it needs
to
upgrade and improve admin systems at the £4.2bn scheme. Its widely respected
Chief
Pensions Officer Mike Woodall had long complained of a lack of choice and
flexibility
of products in the market. But he believes the UPM software employed in the new
partnership is capable of transforming systems provision for local authority
schemes.
The new deal will see the system made available to clients through a licensing agreement with ISE or, for smaller funds, through a partnership arrangement with West Midlands Pension Fund. The UPM system adopted by West Midlands and ISE is already widely used in the private sector where it has brought significant cost reductions and service improvements on other systems. Some local authority analysts predict that, if successful, the new venture could break an effective cartel currently enjoyed by a small number of local authority systems suppliers.
Commenting on the new partnership,
Woodall said: "ISE came out of the tendering
exercise as the only supplier with an approach which would genuinely take us
forward and give us the facilities we are looking to introduce. The UPM software
which is currently implemented within the private sector reflects this. UPM will
help us to both improve our internal efficiency and the service we can provide
to members and employers."
While the new venture is primarily designed to serve the West Midlands fund, it will be customised to reflect the Local Government Pension Scheme (LGPS) regulations. Woodall believes the system could be a huge hit with other local authority schemes keen to access, cheaper and more flexible systems. He added that the constraints of the new best value local authority regime could prompt many authorities to take a much closer look at the cost of pension scheme admin and systems.
"We have long thought that
LGPS schemes were crying out for an alternative
solution and numerous other schemes have expressed strong interest in the
project. I think this will prove a red-letter day for the LGPS software
market."
ISE business manager Mick Jennings had already entered a contract with West Midlands to supply its electronic document managing system. But he was delighted to secure the latest agreement and stressed the advantages of the UPM system.
"We have already seen significant benefits in the private sector from the implementation of UPM, including schemes such as Coats Viyella and Universities Superannuation Scheme. We are now turning our attention to the LGPS market and look forward to helping our clients achieve a best value position in the provision of service to members," he said.
ISE UPM Information ISE Press Release
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