Alberta Pensions Services Corporation
Five-Year Strategic Plan: 2015 - 2019
APS Five-Year Strategic Plan 2015 - 2019
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Introduction The future of Alberta Pensions Services Corporation (APS) is filled with promise and opportunity. This five-year plan demonstrates our ongoing commitment to the sustained success of APS. It reaffirms our direction and refines the strategic priorities that will be the focus of our efforts. Our future is one where we achieve excellence in serving Alberta’s public sector pensions, providing service that meets evolving expectations. In our vison of our future, we are recognized as a leader in client engagement that is a valued partner in guiding the pension experience of all stakeholders. We remain committed to our mission: On behalf of the Trustee, obligations for risk managed, efficient and effective pensions services are met; and the needs of plan beneficiaries, employers, and plan governors are met at a cost that demonstrates good stewardship of resources. Our mission, and supporting Ends Policies from our Board of Directors, are at the core of our 2015-2019 Five-Year Strategic Plan. The Ends Policies define the purpose for APS, the results to be realized, and the recipients or beneficiaries of those results. In brief, the six Ends Policies established for APS are: EP 1.0: There is accurate and timely management of pension plan monies in the care or custody of the Corporation. EP 2.0: There is accurate and timely management and maintenance of information and records required for the proper administration of each pension plan. EP 3.0: Clients (members, pensioners and beneficiaries) receive timely, accurate information and decision-making support about their entitlements and obligations under each pension plan, and correct benefit entitlements when they are due. EP 4.0: Employers receive appropriate information and support to meet their needs related to pension administration. EP 5.0: Plan governors (plan boards) receive accurate and reliable information to support their respective obligations and mandates. EP 6.0: The Trustee (Minister of Finance and Enterprise) receives accurate and reliable information and support to fulfill the Trustee’s obligations for each pension plan. Please refer to Appendix A for the complete texts of the Ends Policies.
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Who We Are APS was incorporated in 1995 under Alberta’s Business Corporations Act, with the Government of Alberta as the sole Shareholder. On behalf of the Trustee of seven public sector pension plans and two supplementary plans we guide the pension experience with great care, special expertise and with a focus on service. In 2013, APS provided direct services to over 247,400 members, 84,900 pensioners and beneficiaries (together, our Clients), and 490 employers. Our commitment to provide timely, clear and accurate answers to our clients’ questions extends to these groups, along with plan governors, the Trustee of these plans and our Shareholder.
What We Do APS provides the following services:
• • • •
Benefit calculations and payments; Employer remittance and reconciliations management; Regulatory, financial and reporting compliance;
Policy consultation, support and development; • Plan board support and agenda services;
• Accurate and reliable information to support plan governors respective obligations and mandates;
• Information and education; • Records management.
How We Act APS is proud to be passionate about pensions! Every action of our professional and highly engaged team is guided by three core values:
• Service – Make every interaction count; • Quality – What we do, we do well; • Accountability – Take responsibility.
Who We Serve APS guides the pension experience on behalf of the following seven public sector pension plans and two supplementary plans:
• • • • • • • • •
Local Authorities Pension Plan (LAPP); Public Service Pension Plan (PSPP); Management Employees Pension Plan (MEPP); Special Forces Pension Plan (SFPP); Public Service Management (Closed Membership) Pension Plan (PSM(CM)PP); Members of the Legislative Assembly Pension Plan (MLAPP); Supplementary Retirement Plan for Public Service Managers (MSRP); Provincial Judges and Masters in Chambers (Registered) Pension Plan (PJMC(R)PP); Provincial Judges and Master in Chambers (Unregistered) Pension Plan (PJMC(U)PP).
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Our Agenda for the Next Five Years The 2015-2019 Five-Year Strategic Plan sets out a path to realize our Mission and our Vision of how we want others to think of us into the future. This plan builds on the successes of our previous strategic plans. Guided by those plans, APS has: • Created a Members Service Centre with trained, professional staff dedicated to each plan; • Enhanced our Employer Service Centre and added specialists dedicated to each employer; • Branded all products and services by pension plan; • Established an award winning privacy framework; • Grown our on-line service offering to both members and employers; • Converted member, pensioner and employer records to electronic format; • Instituted a formal governance structure and process to effectively identify and manage risks within acceptable tolerance levels; • Dramatically increased employee engagement and employee development. We are headed in the right direction and entering a truly exciting time in the history of our organization! Within the timeframe of this Five-Year Strategic Plan, we will successfully complete the Next Generation project, our multi-year, multi-system business transformation project. In completing this project, APS will be creating an engaging pension experience for our clients by delivering improvements on the key values drivers of: compliance and accuracy; client satisfaction; service performance; cost and stewardship; and employee well-being. The full implementation will result in increased automation, simplify the delivery of pension services, and provide us with a technology platform that can be leveraged to provide the services our clients want. The APS team is committed to enhancing the pension experience. We will continue to listen to our clients and stakeholders, and are committed to implementing meaningful improvements to our services. We will provide flexibility to access our services based on differentiated client needs: Client self-service for routine information or service requests to a more personalized approach when clients are making important benefit choices related to life events. Our path to the future is not just driven by technology. We understand that to succeed in realizing our Mission and our Vision, we must continue to invest in our people, and most importantly focus beyond client and stakeholder satisfaction to fully engage with them in guiding their pension experience. Our Mission - What We Exist To Do On behalf of the Trustee, obligations for risk managed, efficient and effective pensions services are met; and the needs of plan beneficiaries, employers, and plan governors are met at a cost that demonstrates good stewardship of resources. Our Vision - What we Strive to Achieve It is our vision to be highly valued and trusted to: • • • • •
Make the pension experience easier; Provide clear information and support; Deliver service with skill and care; Meet obligations and keep promises; Demonstrate the value of pension plans.
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Assumptions We Made It is our belief that the APS five-year strategic plan: • •
•
•
Is ambitious. It provides a path to a future that, with commitment, focus and expertise, can be achieved. Mandates transformation in business operations. How we do things must change. This strategic plan continues the transformation of APS into the preferred pension service provider by transforming how APS provides its services, the skills and expertise APS develops and retains, and renews the partnership with plan governors and employers. Recognizes that our environment can change rapidly. APS and our Board of Directors will need to continually evaluate priorities, and remain flexible and adaptable to opportunities and risks that are brought on by changes to our environment. The current discussion of possible reforms to the pension plan governance models, for example, could have significant impact on the strategic plans of APS and will be monitored closely. Continues our current direction. What we exist to do, expressed in our Mission and Ends Policies will not significantly change.
Our Strategic Priorities By focusing our passion and energy on four strategic priorities, APS will advance its transformation to the preferred provider of pension administration service in Alberta. This transformation will be challenging and demand APS be ever more responsive to the needs of our clients, have the right people with the right skills, demonstrate value in providing service, and strive for excellence in client engagement. Within each strategic priority are specific goals. Through the achievement of these goals we will realize certain key outcomes for clients, the Shareholder, the Trustee, plan governors, and employers. Our strategic priorities, supported by goals, are as follows: Strategic Priority 1:
Focus on Clients.
We anticipate demand for the services provided by APS will increase over the next five years driven by demographic trends and labour market dynamics. In addition, how APS provides its services will need to change. Clients are demanding alternative communication and service channels as well as the ability to perform transaction and research on their own terms. At the same time, APS will continue to provide the face-to-face delivery of our services at times when our clients need them. We’ll always take the time to get it right. Our goals in support of Strategic Priority 1 are to: • • •
Develop and implement new enhanced services to transform relationship with clients and employers. Demonstrate our corporate commitment to a renewed relationship with plan governors. Continuously improve products and services to meet client, employer and Trustee needs and expectations.
Linkage to Ends Policies: EP 1.0, EP 3.0, EP 4.0 EP 5.0 Strategic Priority 2:
Invest in Talent.
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We are committed to the development and growth of our enthusiastic pension experts. As outlined in our previous strategic plan, APS will continue to focus on having the right people, with the right skills, in the right job at the right time. We firmly believe that the future success of APS will be led by our investment in our people. Our goals in support of Strategic Priority 2 are: • • •
Organizational design in alignment with current and future business requirements. Improve workforce capabilities through pension education, change management and knowledge retention. Maintain a vision of the future skills and capabilities required by APS to be flexible and agile in its current and future operations.
Strategic Priority 3:
Demonstrate Our Value.
The nature of our business is complex and subject to constant change. The investment in Next Generation will simplify the delivery of pension services through integration and automation and will allow APS to adapt to changes more quickly and at lower costs. The completion of the Next Generation project positions APS for the future, and will enable us to clearly demonstrate the value of APS and the services it provides to our stakeholders. Our goals in support of Strategic Priority 3 are: • • •
Establish and promote key value drivers for pension administration services. Complete Next Generation business transformation initiative. Provide assurance that services are being delivered efficiently, effectively and in a manner that manages risk.
Linkage to Ends Policies: EP 2.0 Strategic Priority 4:
Engage and Educate.
While defined benefit pension plans remain a central provision for retirement security in the public sector, there is increased focus on reforms designed to make the plans more secure, adaptable and affordable. As the administrator, we will demonstrate support of the policy initiatives of the trustee and plan governors and work to increase the understanding and value of public service pension plans. Our goals in support of Strategic Priority 4 are: • •
Work closely with the trustee, plan governors and employers to increase engagement of plan members and beneficiaries. Develop and implement strategies to promote the value and benefits of pension plans.
Linkages to Ends Policies: 1.0 – 6.0 How Will We Measure Success We will know when our efforts are successful when we achieve the following outcomes: a) The information and products delivered are consistent with emerging client service expectations as demonstrated by our client satisfaction scores and our service standards. b) Clients and employers are informed, educated and engaged in pension services as demonstrated by our client engagement and employer engagement measure. c) Services are aligned to the needs and expectations of the plan governors and Trustee as demonstrated by our service standards.
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d) Products and services are provided in a cost effective way as demonstrated by managing our costs on planned budget basis and benchmarking to other service providers. e) Products and services are easy to understand and use as demonstrated by our client satisfaction scores. f) Products are trusted, accurate and secure, and services are provided in a timely manner as demonstrated by our service standards. g) Success of the Next Generation project as demonstrated by achieving our targets for the value drivers of : compliance and accuracy, client satisfaction, service performance, cost and stewardship, and employee well-being as defined in our approved Measures of Success for Next Generation. h) Corporate opportunities and risks are considered and managed to an acceptable tolerance level as demonstrated by our Corporate Risk Register. i)
Current and future workforce skills and capabilities managed through our career path and succession plans.
j)
Employees are skilled and engaged in the work they do as demonstrated by the Employee Engagement measure, client satisfaction score and our service standards.
Our Milestones for Progress The following milestones will demonstrate progress toward achieving the plan: Initiatives
In three years...
In five years...
Self Service
•
All clients have access to secure online services.
•
Secure online services fully integrated into pension administration processes.
Client and Employer Service
•
Enhanced service model defined and development plan created.
•
Services delivered under enhanced service model.
Plan Governors
•
Renewed service model adopted.
•
Service delivered under new service model.
Talent Management
•
Succession talent pools regularly updated and aligned with capabilities to support strategic environment
•
Succession talent pools aligned with future capabilities.
Organizational Alignment
•
Organization is aligned for current and future business operations.
Next Generation
•
System is fully operational and all present pension products on new system.
Client Engagement
•
Engagement measures for clients adopted and targets established.
•
Positive client engagement reputation at national level.
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Conclusion The 2015-2019 Five-Year Strategic Plan supports APS’ focus of becoming a leader in client engagement through the delivery of valued, risk managed pension services. It provides the roadmap for transforming how we provide services and leads to way to a renewed relationship with stakeholders. The future is bright for APS!
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Appendix A: Mission and Ends Policies Mission On behalf of the Trustee, obligations for risk managed, efficient and effective pensions services are met; and the needs of plan beneficiaries, employers, and plan governors are met at a cost that demonstrates good stewardship of resources.
Ends Policies EP 1.0 FINANCIAL AND COMPLIANCE MANAGEMENT There is accurate and timely management of pension plan monies in the care or custody of the Corporation. This includes, but is not limited to: 1. Timely, accurate reconciliation, accounting for and reporting of all information and monies received and disbursed from each pension plan. 2. Timely, accurate reporting of matters required for compliance with the Income Tax Act (Canada) and other legislation required to maintain the registration of each pension plan under the Income Tax Act (Canada). EP 2.0 PENSION PLAN INFORMATION MANAGEMENT There is accurate and timely management and maintenance of information and records required for the proper administration of each pension plan. EP 3.0 BENEFICIARIES Members, pensioners and beneficiaries receive: • Timely, accurate information and decision-making support about their entitlements and obligations under each pension plan. • Correct benefit entitlements when they are due. EP 4.0 EMPLOYERS Employers receive appropriate information and support to meet their needs related to pension administration. This includes but is not limited to: 1. Timely remittance, reconciliation, reporting and settlement of member and employer data and contributions. 2. Timely reporting respecting annual and triennial audits submitted to APS for review and reporting. EP 5.0 PLAN GOVERNORS Plan governors receive accurate and reliable information to support their respective obligations and mandates. EP 6.0 PLAN TRUSTEE The Trustee receives accurate and reliable information and support to fulfil the Trustee’s obligations for each pension plan.
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Appendix B: Risk Analysis The primary objective of the Corporation’s Risk Management Program is to identify, assess, monitor and ensure that appropriate management strategies are in place for known risks. APS annually undertakes a substantive review of its operations and business segments for which we purposely manage risks as part of our day-to-day operations. Consistent with our Mission, risk mitigation strategies and improvement efforts are also key inputs into our strategic and business plans. The following table identifies the business segments and provides the definition of the associated risk as adopted by APS.
APS’ risk managed business segments: Risks Related to Strategic Priority 1: Focus on Clients Client Responsiveness
Service quality, timeliness, compliance and complaints administration expectations are met to fulfil the Corporation’s reputation as a valued service provider.
Employer Relations
APS provides employers with appropriate information and support to enable them to meet their obligations to submit timely and accurate information to the Corporation, enabling the delivery of quality services to members and pensioners.
Regulatory Compliance Tax Compliance
APS complies with statutory and legislative requirements.
Processing Integrity
Checks and balances in processing transactions exist to support the accuracy, authorization, completeness, and timeliness of benefits and pension services.
Data Integrity
Adequate controls over the accuracy, completeness and quality of client data are instituted and maintained.
Records Management Retention and Integration Plan Fund Accountability
All records are captured, retained and disposed of in a timely, accurate and secure manner, ensuring integrity of corporate records and enabling the Corporation to fulfil its Mission and Ends policies.
Availability & Continuity
Availability and continuity of service delivery is maintained in the event of a major interruption or failure to enable on going delivery of its critical services.
Business Interruption
Plans are in place to ameliorate short-term unplanned interruptions in core or support business services to ensure on going operational viability.
System Maintenance
Systems are maintained and tested in an orderly and controlled manner to assure integrity of installed systems.
Information Security
Access to information, data or systems is properly managed, to provide employees with appropriate access privileges to effectively perform their duties and minimize potential compromise of data integrity.
Physical Asset Protection
APS has adequate security measures to protect the Corporation’s physical assets against theft, or unauthorized access.
Legal Liability
Exposure to risk of litigation, which may result in financial loss to the Corporation or damage its reputation, is mitigated.
Vendor Concentration
Relationships with key service vendors are appropriately managed to minimize unacceptable business interruptions or excessive costs if vendors cease to exist or are unable to maintain a satisfactory level of service.
APS complies with applicable federal and provincial tax remittance and reporting requirements, minimizing the Corporation’s exposure to financial and reputational loss.
APS has effective management and reporting processes in place to ensure complete and timely accountability of all Plan receipts and disbursements flowing through the APS operations, mitigating the Corporation’s exposure to reputation and financial loss.
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Risks Related to Strategic Priority 2: Invest in Talent Capability Alignment
APS has the appropriate organizational structure and individual position responsibilities and accountabilities adequately defined and aligned with the Corporation’s business model to support the effective achievement of its Mission and Ends policies.
Employee Performance
APS maintains an adequate performance management system which aligns individual compensation and rewards with expected competencies and goals.
Employee Retention
The Corporation provides a working environment and a compensation and benefits program that supports employee involvement and commitment to organizational success to attract, develop and retain the right people to support and achieve its mission and goals.
Succession Planning and Development Health & Safety
APS maintains adequate levels of training, development and knowledge transfer for key positions in the Corporation. The Corporation provides a safe and secure work environment that mitigates employees’ exposure to physical harm or workers’ compensation liabilities or other losses.
Risks Related to Strategic Priority 3: Demonstrate Our Value Project Governance
APS has appropriate project governance and oversight to ensure the Next Generation project deliverables and outcomes are realized.
Project Delivery
APS has effective processes to deliver projects in a timely and cost-effective manner, enabling the Corporation’s ability to provide quality service.
Change Management
APS is able to plan for and adapt to changing internal and external environments, including the appropriate transition of people, processes and technology, to achieve its Mission and Ends Policies. APS has adequate technology capacity and appropriate platforms to support the Corporation’s business processes and its strategic and operational goals.
Technology Capacity Privacy Protection
APS complies with legislative requirements to protect the privacy and confidentiality of client and employee data.
Ethics and Fraud
Ethics and standards are established, promoted and enforced to prevent and detect employee acts which are considered unethical or fraudulent.
Shareholder Alignment
APS acts in accordance with the letter and spirit of the Unanimous Shareholder Agreement as appropriate to satisfy the needs and expectations of its sole shareholder.
External Reporting
Due care is taken and evidence exists to support all external reporting and management representations minimizing the Corporation’s exposure to financial penalties, misstatement of financial information or representations and reputational loss.
Business Planning & Performance Reporting
Realistic and accurate strategic planning, business planning and performance monitoring to support appropriate conclusions, allocations and decisions to achieve the Corporation’s Mission and Ends Policies.
Cost Management
Appropriate planning and budgetary controls support the Corporation in meeting cost management expectations.
Risks Related to Strategic Priority 4: Engage and Educate Corporate Governance
APS has the appropriate business model and governance processes in place, impacting the Corporation’s ability to effectively achieve its Mission and Ends Policies.
Plan Governors
APS has the appropriate service model and accountability structure to effectively manage relationships and provide suitable resources and expertise to plan governors.
Communication
APS communicates relevant, accurate, and timely information to external stakeholders.
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