The Tasmania-based Retirement Benefits Fund (RBF) has officially started outsourcing some services to Mercer under a plan aimed at warding off systems failure and other potential problems from its outdated computer technology.
“Our partnership with Mercer not only safeguards RBF and its members from future risks associated with our ageing computer systems, but presents us with exciting opportunities to enhance the services we provide to our members through three key areas of improving service value, encouraging business growth and improving cost outcomes,” RBF chief executive Philip Mussared said in a statement.
RBF decided in April 2010 to appoint Mercer to manage its administration and member services, it said in its December 2010 newsletter, in which the fund first told its members of the change.
Mercer’s Asia-Pacific outsourcing business leader Sandy McCarthy said its RBF contract is an industry first.
“Partnering with RBF is a significant milestone for Mercer as it is the first major public sector superannuation fund in Australia to move to an outsourcing model with the private sector for their superannuation administration,” McCarthy said.
Mussared has said the move would help reduce the risk of computer systems failure and would speed the time it takes to adjust systems for regulatory changes.
In March, the RBF said the move would result in the loss of 85 jobs, or half of its workforce of 190 people.
RBF manages about $3.8 billion for 75,000 public-sector employees in Tasmania.
In February, RBF appointed Ian Lundy as its new chief investment officer.
Mussared said then: “Lundy’s appointment completes the new executive structure supporting RBF’s strategic direction which involves engaging an administration partner, Mercer (Australia), and positioning RBF to apply to the Australian Prudential Regulation Authority for licensing as a registered superannuation fund.”
The transition of data to Mercer’s systems is to be completed by 30 June, RBF has said.
