The Impact of AI and Cloud Technology on Pension Administration Software

Highlights

• Introduction
• Applicability of pension administration software
• Technological advancements in pension administration
• Recent developments in the landscape

Pension administration software helps set up, manage, and invest pension funds based on plan rules. It maintains precise and comprehensive plan records, ensures proper contributions to the pension plan, and facilitates benefit payments to beneficiaries. By automating pension processes, the software significantly reduces the time required for manual tasks.

The adoption of pension administration software globally accelerates overall turnaround time by automating traditionally time-consuming processes when handled manually. It also streamlines various daily tasks, allowing teams to focus on critical activities, which is expected to boost demand and accelerate growth in the pension administration software industry. Additionally, the increasing preference for advanced services such as streamlined pension plans with minimal paperwork, the rise in small businesses, and technological advancements in administration and management are all contributing to the growth of the landscape. It is estimated to showcase an impressive CAGR of 11.4% by 2032.

Versatile applicability of pension administration software

Pension administration software reduces process turnaround time by automating tasks that were previously time-consuming when done manually. It handles various functions such as posting late fees, generating and sending default notices, and calculating penalties and fees. By streamlining many aspects of daily operations, the software allows teams to concentrate on essential tasks while eliminating lower-value, time-consuming activities. 

A key function of the software is monitoring pensions and providing improved pension plans to customers. Additionally, it also helps generate accounting reports, invoices, and statements, which are essential for smooth administration. The software ensures data accuracy and enables easy extraction of information in real time, reducing processing time.

 

Streamlining pension administration with AI and cloud technology

 

There is a growing focus on automating routine tasks in pension administration to decrease reliance on human intervention and enable administrators to concentrate on complicated issues. The integration of AI is anticipated to boost operational efficiency by automating processes and enhancing data quality, which will lead to an improved experience for pension scheme members.

 

Moreover, the shift to cloud-based platforms is becoming more widespread, providing pension administrators with increased flexibility and scalability. Cloud solutions lower operational costs and enhance data management capabilities, making them a compelling choice for many organizations.

 

BA Pensions selected Procentia as its administration software platform provider

BA Pensions chose Procentia to deliver a unified administration software platform for its 85,000 members in October 2023. By implementing Procentia’s IntelliPen platform, BA Pensions aims to enhance member services for British Airways’ two final salary pension funds. This system includes a user-friendly web-based portal offering a broader range of services for efficient pension management. Additionally, it features a pension calculator that allows members to simulate various retirement options, helping them make informed decisions about their benefits.

The International Union of Painters, Vitech Systems Group, and Allied Trades Industry Pension Fund expanded their partnership with V3locity

Vitech Systems Group announced that the IUPAT (International Union of Painters and Allied Trades) Industry Pension Fund has chosen to implement V3locity, Vitech's advanced cloud platform, for better administration, engagement, and analytics.

Building on a strong partnership of nearly 15 years, IUPAT's continued trust in Vitech’s solutions highlights their mutual dedication to transforming pension administration. By adopting V3locity, the Fund guarantees ongoing excellence in administration services while enhancing security and performance. IUPAT’s shift to V3locity reflects a futuristic strategy, utilizing the platform’s ongoing updates to safeguard its operations for the future. This strategic decision is projected to offer a smoother and improved experience for plan participants, as V3locity brings advanced features and innovations designed for modernized service.

The Royal Mail CDC pension scheme selected EQ as its software supplier

In July 2021, Royal Mail’s CPP (Collective Pension Plan), appointed EQ (Equiniti) as its software supplier following a thorough selection process. EQ’s pension administration software, Compendia, was chosen for its adaptability and innovation, which align with the specific needs of the CPP. This appointment is noted as the latest in a series of client wins and renewals for the provider, which also recently includes its reappointment as the third-party administrator for the HP Retirement Benefit Plan.

To conclude, pension administration software transforms the industry by automating complex tasks, reducing turnaround times, and improving efficiency. Advances in AI and cloud technology enhance data management and lower operational costs. Moreover, the growing adoption of these technologies highlights a shift toward advanced, user-friendly solutions, boosting overall effectiveness and service quality in pension administration.

For more details on the opportunities in the pension administration software landscape, feel free to contact us!

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