Insights
Embracing change, why don't pension schemes re-platform?
In the ever-evolving world of pension management, staying ahead of the curve is crucial. Yet, many pension schemes find themselves stuck with outdated platforms, reluctant to make the leap to more modern solutions. Mantle’s Graeme Riddoch explores the reasons behind this and presents a compelling case for why re-platforming could be the key to unlocking efficiency, cost savings, and improved member experiences.
Why don’t pension schemes re-platform, there are a number of reasons,
- Not uncomfortable enough to move
- Lack of awareness of better solutions
- Perceived high cost of transition
- Concerns about impact on the admin team
The comfort zone
On the first point it’s clear that many schemes can be far from satisfied with their current provider but not so dissatisfied that they are actively seeking to move. Often a platform going out of support can be the trigger.
Believe in better
From first-hand experience of talking to pensions managers there’s a low expectation of what can be achieved by moving platform and the problems that can be solved. When they realise that better is possible, they get very interested.
Too expensive
The biggest barrier however can be the anticipated cost to move.
I spoke to one pensions manager running a scheme with around 20,000 members. When they moved to their current platform some 10 years ago the cost was in the region of £1M! However, it’s important to consider that technology has evolved, and modern solutions often offer more cost-effective transition processes.
Internal cost to change
It’s not just the transition costs but the impact on staff and resourcing the transition internally. One scheme we spoke to found, the move to their current platform very hard as a lot of the sign off on calculation testing fell on the admin team, who were flat out running the scheme on a day-to-day basis. They vowed never to move again! However, modern platforms have streamlined these processes, significantly reducing the burden on internal teams.
A modern solution
Mantle relative to many legacy platforms can transform the experience for administrator and member alike. Mantle offers:
- 100% calculation automation
- Integrated payroll, treasury and accounts
- Integrated actuarial for live valuations
- Member self-serve in the bundle
- Pensions Dashboards ready
This creates efficiency, saves money and delivers a better experience for administrators and ultimately the member.
The cost effective transition
We know from clients that our transition costs are a fraction of others. There’s a number of reasons for this.
A highly configurable solution. No development required or black box coding of calculations for even the most complex benefit structures.
No rocket scientists required. Skilled administrators can set up Mantle reducing setup costs.
Making it easy
Moving platform is undoubtedly a significant undertaking for any scheme, even if the benefits are clear.
Calculation testing can have a big dependency on the in house team.
Wind forward to a modern system with a different approach to onboarding and the cost to transition is a fraction of what was paid previously and the call on the admin team minimised.
Embracing the future of re-platforming
Don’t let the fear of change hold your scheme back. Explore the possibilities of modern pension management software and take the first step towards a more efficient, cost-effective, and member-focused future. Your administrators—and more importantly, your members—will thank you for it.
For further information on re-platforming and what Mantle can offer, visit our website www.mantleservices.com or contact us at enquiries@mantleservices.com
