ESTI Consulting Services - Pension Administration

Pension Administration

Our solutions will allow you to bring clarity to the complex world of Pension Administration, allowing for better data management and tighter process control.

ESTI has worked with numerous business partners and clients to build integrated pension administration modules for Canadian pension plans based on the Oracle database platform. These systems have provided our clients with dramatic and quantitative improvements in productivity. In the process of developing custom made applications as well implementing existing modules within specific environments, we have developed knowledge, skills, and methodologies that we are able to provide across our client base.

ESTI has successfully implemented top shelf custom pension systems that incorporate both our flagship solutions and the following functional modules described below.

Member Information System

Many of our pension plan clients have a member information system (MIS). The MIS contains the core database with control mechanisms and functions that allow it to be the central point of access to other modules and all data. This central repository contains all of the relevant member and employer information. Contribution and service information is maintained on a detailed level to support contribution allocation, interest calculations, service allocation, and annual reporting.

Employer Data

Many of our pension plan clients receive data from their employers using an automated system built by ESTI. This system is called either the Data Capture System (DCS) or the Remittance System (REM) depending on the individual plan. Regardless of the name, the module controls the acquisition of member data for subsequent posting to the member database.

Integral to this processing is proactive data quality management. This is accomplished through automated tests that can be turned on/off under operator control. Tests are performed to identify and manage data gaps, inconsistencies, and errors in the remittance information provided. The results are reported with appropriate levels of severity (i.e. errors, warnings or passed). Further, financial accounting reconciliation tests are provided (confirmation reporting - expected vs. actual, balancing reporting - posted receipts vs. cash receipts).

Recent leaps in secure technology have allowed ESTI to build this functionality using an Internet based model allowing for data to be remitted across the web. This has greatly reduced data transmittal times and turn around times (sometimes replacing fax based systems). ESTI's new Web Remittance System (WRS) allows plan administrators to provide a higher level of service to data providers and to reap the benefits of improved data.

Data Management

ESTI has developed tools for data correction and manipulation for all of our clients. This tool kit, usually referred to as the data management tool (DMT), is the primary interface to the member database. It provides automated tests and functions along with edit capabilities as determined by the Plan. The DMT must be well structured and easy to navigate due to its wide-ranging core functionality. Data grouped by member is converted and displayed so that staff may follow trends and time lines. For example, staff members may perform an on-screen walk through of a member's historical records. Security is a key design component of the DMT because of the functional interaction with the MIS database.

Terminations, Retirement, and Death Calculation Engine Interface

ESTI has designed and implemented systems to gather and arrange member data prior to its submission to a proven calculation engine for many of our clients. After the engine returns the results the module processes those results into the format and setting used by the particular plan. This is significant as each plan has a unique accounting system, payment structure, interest calculation methodology, etc. Storing the data at each step of the process (from selection to submission, results, and payment) allows staff members to drill down and easily obtain the supporting detailed information for the verification and proof of the calculation.

ESTI has extensive experience in developing interfaces between the member database and a calculation engine. The same processes apply to single case (e.g. processing a retirement) and batches (e.g. processing the annual pension statements for plan members).

Pension and Termination Estimator

ESTI has prepared pension and termination estimator functions for many of our clients. The design is similar to the pension and termination functions. This module provides the interface to collect, select, and arrange the relevant data and then passes that data to a proven calculation engine. However, the information provided to the engine is a combination of real and projected data. The design of the estimator function facilitates either single or batch member processing. The systems that ESTI builds are wizard driven and easy to use. They allow calculations to be performed based on variable projected values including length of service, contributions, salary, and potential transfers and purchases.

Annual Pension Statements and Actuarial Valuation Extract

ESTI has developed a module in use by a number of our clients that allow Plan staff to perform annual processing quickly and reliably. An annual pension statement containing prescribed information must be provided to each member of a registered pension plan within a prescribed period.

The primary objective of the actuarial valuation extract is to ensure ongoing consistency between the records of the actuary and the database. The extracts provide data verification and reconciliation tools for the data analysis historically performed by the actuary. ESTI has a strong and proven methodology for annual processing which vastly reduces the time required to track changes while producing more consistent data. This results in more accurate and timely actuarial valuations.

Transfers

ESTI has worked with several clients to prepare modules that facilitate the transfer of a member's pension. These modules control the selection and submission of member data to a transfer calculation engine and involve a process similar to a termination, retirement or death calculation. The transfer process draws information from the member database, calculates the transfer/termination values using an engine for actuarial calculations as appropriate, provides suitable statements, and then automatically updates the central data store. Throughout this process, the transfer modules maintain both the base data used for the calculation and the results of those calculations. Drill down functionality provides easy access to the supporting information important for the verification and proof of the calculation.

Purchases

ESTI has worked with several clients to prepare purchase of service modules. These purchase systems verify that all purchase applications are eligible under both the plan rules and the legislative limits imposed under the Income Tax Act. They also provide override capabilities to some rules for extraordinary circumstances. Every purchase payment is tracked and separated into principal and interest portions. Links between the purchase and data capture systems can be developed. Links to actuarial calculation engines and pension adjustment calculation tools are made as appropriate.

Retired Members

ESTI has built and implemented a complete automated system used to administer retired member, beneficiary, and joint annuitant pension benefits. This system also administers pension payments to members in receipt of long- term disability payments. The system stores personal and banking information for the retired members, their joint annuitants and beneficiaries, and tracks payments.

Coupled with the administration of retired member services, ESTI has built a comprehensive payment production system. Several of our clients use this system to process retirement, long term disability and termination payments.