First to Market. Case Study. The successful collaboration between Aquila Heywood and Fidelity enabled it to launch a market-leading proposition.

Transcription

1 Case Study The successful collaboration between Aquila Heywood and Fidelity enabled it to launch a market-leading proposition.

2 Background As a result of the Pensions Acts of 2008 and 2011, automatic enrolment (AE) was set to transform workplace pensions. Over ten million people would be automatically enrolled into a workplace pension scheme between 2012 and This meant there would be a heavy burden placed on employers as well as pension providers running workplace schemes. Technology solutions delivering streamlined processes and automation would be key. 2 Aquila Heywood

3 Company Overview Fidelity Worldwide Investment, one of the UK s leading pensions and investment companies, set about creating an AE solution with market-leading technology from Aquila Heywood. 3 Aquila Heywood

4 Fidelity Worldwide Investment Key Figures 159 employers automatically enrolled 41,000 individual members automatically enrolled 40% increase in business transactions 8 new clients attracted 4 Aquila Heywood

5 Business Objectives Reduce the administrative burden placed on both employers and Fidelity s administration teams. Be the market leader with a strong automatic enrolment proposition. Reduce administration costs with automated processes. Win new business on the back of reliable and proven technology. 5 Aquila Heywood

6 Key Challenges 1 Understanding Legislation Understanding the new legislation was a key element of the solution design; the collaboration of Fidelity and Aquila Heywood brought together significant market insight and deep technical knowledge. 2 3 Meeting Customer Requirements Meeting the requirements of Fidelity s existing clients, as well as those of potential new clients, would be vital in creating a solution that would provide full AE workforce management, but also support employers that performed AE workforce management elements in-house. Automating Communication Any proposed solution would also have to automate communications with employees fully, ensuring regulatory compliance from the first AE staging date and into the future. 6 Aquila Heywood

7 Our Approach Measure twice, cut once Aquila Heywood solutions have addressed new legislative and regulatory changes over many years. The knowledge and proven experience of both Fidelity and Aquila Heywood made an ideal combination for contributing to the AE legislation consultation phases and detailed regulations prior to finalisation. Working closely with the DWP and The Pensions Regulator, both parties were able to explain the challenges for industry suppliers, understand fully the legislative requirements and suggest changes, where applicable. This engagement was vital in getting the initial solution design right first time against a deadline that was set in stone. A framework that also had the flexibility to deal with last-minute legislative guidance and changes for AE was agreed. Aquila Heywood and Fidelity then began a collaborative project to build the market s first AE solution. 7 Aquila Heywood

8 Our Solution Aquila Heywood's solutions have always had a future-proof design element. The AE project was no exception. The system design used parameterisation wherever possible. This enabled future legislative change requirements to be addressed without the need for additional coding, thus combining quick, accurate updates with a degree of selfsufficiency. A key objective was to have a solution rich with automated processes to drive out efficiencies and keep costs under control. These included: In conjunction with Aquila Heywood s HR Interface, the system was designed to recalculate AE histories to account for any significant changes, including benefit status for employees working overseas and salary adjustments. Recalculation of contribution levels is carried out should an employee s eligibility change. The solution also enabled employers to build flexibility into their own propositions, due to the in-built support of scheme and category rules that are more generous than default minimum AE values. Full automation of joiners and leavers Re-enrolments End-of-postponement assessment AE status assessment for stagers and live members Processing pending enrolments Registration and re-registration reports Existing scheme and employer transition features Key Fact The project team built a scheme transition tool that automated the on-boarding process to reduce costs for Fidelity's existing customer base. 8 Aquila Heywood

9 Benefits Delivered Fidelity launched the automatic enrolment solution ahead of the first staging date of 1 October 2012 and it was met with positive feedback in the industry press. The solution had proven to be robust and scalable through rigorous testing and subsequently in live production. Fidelity had the market-leading proposition it was looking for and realised its ambition of being first to market. 9 Aquila Heywood

10 Benefits Delivered Cost savings were also delivered to both Fidelity and its clients by: Fidelity's ability to manage the eligibility criteria and regulatory enrolment processes for a client's entire workforce Limiting increases in a client's headcount required to fulfil ongoing AE administration tasks and in Fidelity's own administration staff required to deal with the increased volumes of business thanks to the solution's efficient and automated workflow processes Within the first 12 months of the automatic enrolment legislation going live, 49 employers fulfilled their AE staging date obligations through the Fidelity proposition, with 41,000 individuals having been automatically enrolled. To date, Fidelity has: Automatically enrolled 159 employers, including eight new clients Having got the system to market so promptly in advance of the implementation of the new rules, Fidelity has clearly set a benchmark against which other players will be judged. Money Marketing December 2012 Our new service saves employers both time and money, enables them to ensure a smooth-running service to their employees and avoids them having to go into potentially complex outsourcing arrangements with third parties. Julian Webb, Head of DC and Workplace Savings, Fidelity Worldwide Investment Increased transaction volumes by around 40% 10 Aquila Heywood

11 Conclusion Fidelity s automatic enrolment team provides a seamless service to both its new and its existing clients. The collaboration of Fidelity and Aquila Heywood has: Produced a solution against which all others are measured Made complicated legislation obligations for employers appear simple and straightforward. For more information, contact us on enquiries@aquilaheywood.co.uk or visit our website: 11 Aquila Heywood