ALBERTA PENSIONS SERVICES BUSINESS PLAN 2020 - Alberta Pensions Services ...
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ALBERTA PENSIONS SERVICES BUSINESS PLAN 2020
CONTENTS
Committed to Service ................................................ 3 Corporate Scorecard ................................................. 18
Business Planning Process ........................................ 4 Risk Management..................................................... 19
Vision, Mission & Values ............................................ 5 Looking Ahead........................................................... 20
Services, Clients & Scope ........................................... 6 Appendix A ............................................................... 21
2020 Budget Overview..........................................21
Our Strategic Objectives ............................................ 7
Budget & Financials............................................ 22
Key Themes for 2020 ................................................. 8
Appendix B ................................................................ 25
Reliability .................................................................... 9
CEM Comparison: Performance & Service............... 25
2020 Core Services Reliability Highlights.................. 9
Appendix C ................................................................ 26
Innovation ................................................................. 10
CEM Comparison: Cost Per Member....................... 26
2020 Projects & initiatives Highlights.................... 10
People & Culture ...................................................... 15
2020 People & Culture initiatives.. ..........................16
APS BUSINESS PLAN 2020 2COMMITTED TO SERVICE
Over the past year, Alberta’s pension landscape shifted, creating an opportunity to revisit our business and
service delivery model. The first shift was Bill 27: Joint Governance of Public Sector Pension Plans Act and
the second shift was with Bill 22: Reform of Agencies, Boards and Commissions and Government Enterprise
Act, 2019. We experienced changes in plan governance and received direction from our sole shareholder,
the Government of Alberta, to control the costs of pension benefits administration services. The changes in
governance, service levels and support are significant for us and our clients, and we look forward to working
closely with our clients to succeed in this new environment.
Alberta Pensions Services Corporation (APS) is committed to ˭ The members of the plans we serve count on the
supporting our clients and working with them in a way that reliability of our core services, and we will work with our
is collaborative, accountable and proactive in order to meet clients to deliver these critical core services in an efficient
their needs and the needs of their members, pensioners and and effective manner.
employers. We acknowledge that we have opportunities to ˭ We will focus innovation efforts on streamlining service
improve service delivery, and we will strive to increase our clients’ delivery and increasing the efficiency with which we serve
trust through a renewed focus on our core pension benefits members, pensioners and employers. Innovation is a tool
administration services. to improve client outcomes, and not an end in itself.
˭ We know an engaged and motivated workforce is key to
At the end of 2017, APS prepared and finalized a five-year
delivering high-quality service and support and we will
strategic plan. However, with the significant changes in our
make our people and culture a priority.
business since then we are revisiting and adapting our long-term
plan to ensure it aligns with the current and future needs of our We remain committed to serving our clients and their
clients and the 384,000+ members we are proud to serve. members, ensuring they can count on APS for their pension
services. We look forward to the year ahead.
Our 2020 Business Plan focuses on the elements of our strategic
plan that we know remain important and consistent with the Sincerely,
needs of our clients. It will also align our efforts around our key
themes of reliability, innovation, and people and culture in order
to achieve operational excellence.
Darwin Bozek
President and Chief Executive Officer
APS BUSINESS PLAN 2020 3ANNUAL BUSINESS
PLANNING CYCLE BUSINESS
PLANNING
PROCESS
AP
O US RI
L
NU APS is introducing a new approach to business planning.
TI PRE –J
UN
ON G P
G ATH AR This new approach started in 2019 and will be fully in
INMENT
E
C
O ER A
I N TI place for 2020.
NGURE G
ONNPU
ME O
One of the ways we are enhancing our relationships
AS
I
with clients is through implementing a collaborative and
& T
PHA
EV transparent business planning process to set the overall
AS S
direction for APS, guide our operation and bring about a
E
PH
I
new level of accountability. Clients will play an important
TION &
U TA I L I T Y
consultation role in the planning process. Budgetory
IV
PHASE restrictions are in place and it is critical that limited
PL ANN
ASE
I C AB
resources are utilized to maximize outcomes for the
UOUS
PH
JUNE
II
members, pensioners, employers and clients we serve
M OUN
N
and support.
TIN
P H A S E III
– JU
NG I
N
M
LY
C CC
CO
Fundamental elements that will be impacted by this new
A
O
approach are the Strategic Plan, Business Plan, Service
Delivery Plans and Corporate Scorecard.
A P P R O VA L
AUGU
ST – NOVEMBER
APS BUSINESS PLAN 2020 4VISION, MISSION & VALUES
OUR VISION OUR MISSION O U R VA L U E S
WHAT WE STRIVE TO ACHIEVE WHAT WE EXIST TO DO DO THE RIGHT THING
Relentlessly pursuing excellence in pension benefits As a pension benefits administrator serving We are driven by our values to always
administration, to serve those who serve Albertans. Albertans, we are knowledgeable, caring "do the right thing."
professionals committed to guiding the pension
˭ Service
experience, delivering the highest standard of
Make every interaction count
accurate, cost-effective service.
˭ Quality
What we do, we do well
˭ Accountability
Take responsibility
APS BUSINESS PLAN 2020 5SERVICES, CLIENTS
MEMBERS BY PL AN & SCOPE
OTHER 1.2% APS works alongside its clients to help guide the pension experience for members,
SFPP 2.0% pensioners and employers. Under the direction of the clients we serve and the
MEPP 3.2% Government of Alberta, we deliver services on behalf of the following seven public
sector pension plans and two supplementary plans:
˭ Local Authorities Pension Plan (LAPP) ˭ Supplementary Retirement Plan
˭ Public Service Pension Plan (PSPP) for Public Service Managers (SRP)
˭ Provincial Judges and Masters in
˭ Management Employees Pension
Chambers (Registered) Pension
Plan (MEPP)
Plan (PJMC(R)PP)
PSPP ˭ Special Forces Pension Plan (SFPP)
˭ Provincial Judges and Master in
22.3% ˭ Public Service Management (Closed
Chambers (Unregistered) Pension
Membership) Pension Plan (PSM(CM)PP)
Plan (PJMC(U)PP)
˭ Members of the Legislative Assembly
LAPP Pension Plan (MLAPP)
71.3%
IN 2019, WE PROVIDED DIRECT SERVICES TO OVER
491 employers
384,000 members and pensioners around the world
AND MANAGED OVER
$6 Billion in pension receipts and disbursements
APS BUSINESS PLAN 2020 6OUR STRATEGIC OBJECTIVES
APS’ strategic objectives are focused on improving the delivery of core pension benefits administration services in a
cost-effective and efficient manner, and improving relationships with our stakeholders.
1. Enhance Stakeholder Relationships
We will strengthen the relationship between APS and the clients and stakeholders we serve.
We will constantly demonstrate the value of our services in order to better meet their needs.
2. Transform Member and Employer Interactions
We will enhance the interactions between APS, employers and plan members (active,
deferred and pensioner) by considering audience age and stage, communication channels,
access to information and self-service transactions.
3. Elevate Member and Employer Pension Benefit Education
We will commit to the education of employers and plan members in the reasons for and
workings of defined benefit pension plans.
4. Optimize Service Delivery
We will continue to focus on opportunities for innovation as a key way to administer and
improve our services.
5. Align and Grow Workforce Capabilities
We will harness the passion and professionalism of APS employees and provide engaging
management, performance measures and development opportunities.
APS BUSINESS PLAN 2020 7IABILIT Y
REL
KEY THEMES FOR 2020
The three themes of APS—reliability, innovation, people
and culture—will lead APS toward the ultimate goal of
operational excellence. Success will mean success for us
ON
CU PLE
and our clients in the services and support we provide
PEO
TI
L
members, pensioners and employers. We achieve all
T
VA
UR
this through collaboration with our clients.
O
E
N
+
IN
OPERATIONAL
EXCELLENCE
RELIABILITY I N N O VAT I O N P E O P L E & C U LT U R E
˭ Building a solid and dependable foundation ˭ Exploring ways to improve ˭ Developing a culture of service with a
highly engaged workforce
To ensure we are delivering on our core pension To review our processes and implement solutions that
benefits administration services in a cost-effective, will make our services more efficient and effective. To foster an environment where collaboration and
efficient and high-quality manner. This includes ongoing process improvements and service come naturally because the people are
targeted programs and projects that deliver value and inspired, empowered and values-driven.
positive results for the people we serve and support.
APS BUSINESS PLAN 2020 8RELIABILITY
BUILDING A SOLID AND DEPENDABLE FOUNDATION
To ensure we are delivering on our core pension benefits administration services in a cost-
effective, efficient and high-quality manner.
We are accountable to clients and their members, pensioners and employers for reliable pension services. Ultimately,
we make sure members and pensioners receive the right amount at the right time. Our benefits administration
services are the basis of everything we do, and people count on us to consistently get them right. Every person at
APS contributes to the core benefits administration work.
2020 CORE SERVICES RELIABILITY HIGHLIGHTS
Our primary focus is on the core pension benefits administration services as defined in our agreements with clients,
which include:
˭ Client services ˭ Benefits calculations and disbursements
˭ Members Services Contact Centre ˭ Employer enrollment, support, education
˭ Contributions management and compliance
˭ Member and pensioner management ˭ Compliance, regulatory and plan financial reporting
and communications
INITIATIVES IN 2020:
˭ Continued focus on a competitive CEM total service score and cost per member measure that demonstrates
value to our stakeholders.
˭ Continued reliability and improvements to our pension administration system and the online employer resource.
˭ Engage with the clients, as per new legislation to amend the Pension Services Agreements (PSAs) to reflect
recent changes to the business environment.
APS BUSINESS PLAN 2020 9INNOVATION
EXPLORING WAYS TO IMPROVE
To review our systems and processes to implement solutions that help to improve
service. This includes ongoing process improvements, targeted programs and projects
that deliver value and positive results for the people we serve and support.
We are continually striving to provide cost-effective and efficient services. We constantly search for
innovations and improvements, not only within the core services we offer every day, but also in our major
projects and initiatives. Whether we are building a new online tool for members, reworking a retirement
process, or testing ways to use automation in our operations, we are using innovation to improve our
services and the client, member, pensioner and employer experience.
2 0 2 0 P RO J E C T S A N D I N I T I AT I V E S H I G H L I G H T S
The following projects and initiatives are highlights of the larger undertakings we are working on in
2020. Each project listed enhances the reliability of our services, and will have a positive impact on
services for members, pensioners and employers. These projects and initiatives were identified and
selected in collaboration with clients, and are projects that support strategic priorities or help support
APS' efforts to improve processes and services. These initiatives are in addition to, and in support of,
the activities and service level requirements outlined in each client's service agreement.
The descriptions are intended to be brief overviews and are not a reflection of detailed scope
or timeline.
APS BUSINESS PLAN 2020 10JOINT GOVERNANCE EMPLOYER RESOURCE (PENSION E-GUIDE) REBUILD
A joint governance project was initiated at the time of changes to pension Pension e-guide is a component of the employer portal; it is the location where
governance in March 2019. employers go to access resources and report pension information. The platform that
the current Pension e-guide is on is at the end of its life cycle, and the guide is in need
The objectives of the joint governance project are as follows:
of a complete review. Fundamental aspects of the review are the user experience, user
˭ Effectively deliver the PSA mandates agreed to by each client and APS. requirements and content.
˭ Compliance with the Employment Pension Plans Act (EPPA).
This project will start with the following steps:
This project is divided into eight key groups that will be treated as sub-projects,
1. Conduct an internal review to evaluate whether APS has an existing tool/platform
with each having its own working group:
to support this content.
1. Group 1 – Relationship Breakdown 2. Work with clients to understand needs and expectations for the project (scope).
2. Group 2 – Privacy & Data Governance
Clients will be engaged and surveyed early in the process to ensure buy-in and alignment.
3. Group 3 – Employer Reporting
Although the employers are the primary stakeholders for the portal and its content, clients
4. Group 4 – Benefits Calculations
will approve the direction and mode of delivery before any implementation or decisions
5. Group 5 – Plan Text, Supporting Documentation & Transfer Agreements
take place.
6. Group 6 – Statements, Disclosure & Forms
7. Group 7 – Benefit Payments & Payroll Benefits:
8. Group 8 – Implementation of PSAs
˭ Improved experience for employers.
Working-group benefits: ˭ Improved information management, ensuring the information employers have
access to is correct and easy to maintain on a continuous basis.
˭ Ability of APS to meet the EPPA requirements in a timely manner.
˭ Direct involvement, transparency and collaboration between APS and the clients. Estimated completion: 2021
˭ Ability to leverage economies of scale from the other pension plans participating
in this project.
Estimated completion: 2021
APS BUSINESS PLAN 2020 11MYPENSIONPLAN INTEGRATION PENSION BENEFITS ADMINISTRATION
SYSTEM UPGRADE
APS is integrating the existing member and pensioner portal (mypensionplan)
functionality into each client website. As a result, the members will have a seamless A component of the pension benefits administration system (Compass) is the
experience between their plan website and portal. This item is a requirement of workflow engine (CRM 2011). The technology for CRM 2011 is outdated, having come
the PSAs. to the end of mainstream support and nearing the end of extended support. As of July
2021, Microsoft will no longer support CRM 2011. Therefore, APS needs to upgrade to
With this upgrade, members will be able to access their personal pension-related CRM 2015 in order to maintain critical support from the software provider; this will
information directly from within the plan website. The registration and login feature for bring the system to the most current version offered by the vendor.
the portal is being improved as part of this project.
The upgrade to CRM 2015 will include fixes to workflows and address certain
The first phase of this project, the transfer and development of the functionality, workarounds that have existed in the system, process changes and improvements
was completed in 2019. The second phase of this project, the integration of the to Compass, and other fixes and updates within the software. During the CRM 2015
functionality within the client websites, will be completed in 2020. upgrade, APS will also upgrade the foundational software (Windows Service and
MSSQL) to newer versions as this is required for the upgrade. This critical system
This year, we will also work with the clients to determine if any additional
will be maintained and supported by the software vendors and will enable additional
client-specific functionality is requested in order to aid in project planning for
functionality and improvements over the existing version.
future years. However, developing new functionality is not part of the 2020 scope
and budget. Benefits:
Benefits: ˭ Employers – Improvements to processes that interface with the employer portal
will allow for faster processing of employer requests.
˭ One website for all member needs, and an integrated, branded experience.
˭ Members – Increased efficiencies in processing member files will help APS meet
˭ The ability to direct members to a single location.
PSA service standards for member interactions, and will result in more efficient
˭ The ability to brand the portal content to be specific to each client
service for members.
(currently, mypensionplan is not plan-specific).
Estimated completion: 2020
Estimated completion: 2020
APS BUSINESS PLAN 2020 12GO GREEN FUNCTIONALITY EXTERNAL SELF-SERVE REPORTING - CLIENT ACCESS
REQUIREMENTS GATHERING AND PLANNING
This project will more fully enable the Go Green functionality in the pension benefit
administration systems used by APS. Currently, due to system limitations, members In 2020, APS is implementing further data governance and information management
are still being sent paper copies of their pension documents even if they have selected measures that will make self-serve reporting and data access possible.
to "Go Green." The intended functionality is to automatically and individually notify
As part of the data governance and information management initiative, APS is
members when a personal annual statement or tax slip has been uploaded to the
working towards implementing some self-service capabilities for each client. Currently,
member and pensioner portal (mypensionplan). With these improvements, the
each client's data or reporting needs can only be answered by making a request
member will be notified by email to log into the portal for access to the document
through APS. Consultation and planning will take place in 2020 to understand what
that has been made available.
insights are of most value to each client.
Benefits:
Planning for this project will include working with each client to understand what
˭ Allows members to receive documents from their Plan in the way that best insights are of value, including data needs, reporting frequency and licensing needs.
suits them.
Benefits:
˭ Allows members to be environmentally conscious and reduce paper waste.
˭ Reduces the costs of printing and mailing. ˭ Near real-time access to data to aid client in making data‑based decisions.
˭ Reduces the chance of privacy breaches due to wrong addresses or lost mail. ˭ Increased value and efficiency for clients as they would be able to access and
create the reports they need.
Estimated completion: 2020
Estimated completion: 2021
APS BUSINESS PLAN 2020 13COST ALLOCATION METHODOLOGY REVIEW
The cost allocation methodology determines how the costs, expenses and charges
incurred by APS to provide pension benefits administration services to our clients
will be allocated and recovered by APS. Due to pension plan governance changes
impacting a significant proportion of APS' clients, an external review of the cost
allocation methodology will be completed in 2020 to support the APS Board in making
any cost allocation change decisions.
Benefits:
˭ Ensures that costs are allocated fairly and equitably between and amongst all
pension plans that APS serves and that the methodology is able to accommodate
the requirements of the services agreements with our clients.
˭ A review by qualified external professional consultants will help ensure that
best practices are implemented with due regard for comments and feedback
from stakeholders.
˭ Recommendations of specific cost allocation methodologies for certain key
projects planned for 2020. (e.g. Joint Governance, Employer Resource (Pension
e-guide) Rebuild, and mypensionplan Integration)
Estimated completion: 2020
APS BUSINESS PLAN 2020 14PEOPLE & CULTURE
DEVELOPING A CULTURE OF SERVICE WITH A
HIGHLY ENGAGED WORKFORCE Values-Driven
To foster an environment where collaboration and service come naturally
Employees
because the people are inspired, empowered and values-driven.
Even in the face of constant change, one thing that has remained the same is that
“Team APS” is the best thing about working here. We lean on our values to make
decisions that support each other as well as our clients and their members, pensioners
and employers. Fostering and nurturing the APS culture ensures that this commitment
to quality and “doing the right thing” remains strong.
Inspire Empowered
We know an engaged and motivated workforce is key to delivering high-quality service and
Leadership Management
support, and to reaching operational excellence.
We will focus on the following key objectives as we look to enhance our culture
of service at APS: values-driven employees, inspired leadership at all levels, and
empowered management.
APS BUSINESS PLAN 2020 152020 PEOPLE & CULTURE INITIATIVES
VALUES DRIVEN EMPLOYEES
We will recruit, retain, recognize and develop values-driven employees.
CHANGE AND TRANSITION FRAMEWORK
RECRUITMENT STRATEGY
˭ Outcomes
APS has a Change and Transition Framework to provide a systematic, holistic ˭ Outcomes
approach to support employees through change. As a result, APS will realize APS has a recruitment strategy to attract top quality candidates who align to
an increase in change readiness, adoption and sustainability, and the tools to our values and Beacons of Leadership.
navigate change. ˭ Rationale
˭ Rationale Competition for top talent is increasingly complex; a one-size-fits-all approach
The framework is a structured, intentional approach to support our people is not sufficient to attract the talent that APS requires.
through change and will drastically increase change adoption. We want to
provide employees the tools, resources and supports to navigate change and BEACONS OF LEADERSHIP
achieve results.
˭ Outcomes
Beacons of Leadership and other competencies are integrated into recruitment and
EMPLOYEE ENGAGEMENT performance management processes.
˭ ˭ Rationale
Outcomes
APS will have an updated employee engagement strategy that supports the APS values and Beacons of Leadership are critical elements of APS’s culture
re-visioning of engagement at APS and includes deliberate strategies around that need to be reinforced and supported through every role in the organization.
diversity, inclusion and recognition.
˭ Rationale
Employee engagement has a direct impact on recruitment and retention
of employees. A deliberate focus on diversity, inclusion and recognition will
reinforce culture initiatives.
COLLECTIVE BARGAINING
˭ Outcomes
APS will achieve a collective agreement with the union (AUPE) that is
aligned to our mandate and promotes a good relationship with AUPE and
in-scope employees.
˭ Rationale
Collective bargaining can demonstrate APS’ commitment to a good
working environment. Achieving a collective agreement and maintaining
the relationship with AUPE will strengthen the relationship and build trust
between APS and in-scope employees.
APS BUSINESS PLAN 2020 16INSPIRE LEADERSHIP EMPOWERED MANAGEMENT
We will encourage, grow, support and inspire leadership at all levels of the organization. We will develop, equip and sustain empowered management.
CHANGE AND TRANSITION FRAMEWORK CHANGE AND TRANSITION FRAMEWORK
˭ Outcomes ˭ Outcomes
Leaders will have an increasing capacity for leading change and the targeted resources and skills Managers and sponsors have the capabilities to enable and lead through change. They will be
development for success. APS will leverage informal leaders as change champions. strategic partners and have clearly defined roles, responsibilities and supports available to enable
˭ Rationale successful transition through change.
The change framework will help foster resilience and a growth-mindset. It will also provide ˭ Rationale
informal leaders an opportunity to impact change, develop and demonstrate their strengths, Sponsors and managers play a critical role during change. Leadership is one of the greatest
and network with others across the organization. contributors to change success. The framework will provide the tools, resources and supports
to managers and sponsors to lead through change.
EMPLOYEE ENGAGEMENT
˭ Outcomes COLLABORATION FRAMEWORK
The engagement strategy incorporates communities of practice that allow for and foster ˭ Outcomes
collaboration between teams. APS will have a collaboration framework rooted in best practice that reinforces APS' values of
˭ Rationale service, accountability and quality.
Engagement is not owned by Human Resources or by individual managers. Communities of practice ˭ Rationale
allow employees at all levels of the organization to share best practices when it comes to achieving Providing a more formal framework and supporting process and tools will allow a collaborative
desired engagement results. approach to gain momentum and become sustainable as part of normal operations.
EMPLOYEE ENGAGEMENT
BEACONS OF LEADERSHIP
˭ Outcomes
˭ Outcomes
Managers have clear accountabilities for employee engagement and have the tools, resources and
APS will have a Leadership Development Framework which outlines development for all employees.
supports required to communicate results and implement action plans.
˭ Rationale
˭ Rationale
Beacons of Leadership are the foundational pieces of the APS Leadership Development Program.
While employee engagement isn’t the sole responsibility of managers, management has a critical
The program supports the development of informal and formal leaders in the organization.
role to play in stewarding the process and ensuring action is being taken.
CAREER DEVELOPMENT
MANAGER TOOLKIT
˭ Outcomes
˭ Outcomes
APS provides career development, coaching and mentoring that inspires a growth mind-set.
Managers have the tools, supports, information and advice needed to fully execute their
˭ Rationale
management responsibilities.
Career development is critical at all levels of the organization. Coaching and mentoring
˭ Rationale
for career development have a direct link to engagement and forms a critical path for APS
To be successful in their role, managers require soft and hard skill development relevant to their
succession planning.
roles and the changes in management practices.
APS BUSINESS PLAN 2020 17CORPORATE SCORECARD METRICS
The four quadrants of the balanced scorecard provide a framework for strategic 1. STAKEHOLDER ALIGNMENT & SATISFACTION
alignment and effective measurement, while providing a structure in which
˭ Client Relations
performance can be evaluated holistically.
˭ Member and Pensioner Satisfaction
˭ Employer Engagement
O L D E R S AT I S F A C
A KEH TIO
N
˭ Shareholder Alignment
ST
1 2. OPERATIONAL EFFECTIVENESS
˭ Key pension benefits administration services indexes:
˭ Retirements ˭ Contact Centre
S
ES
FIN
˭ Terminations ˭ Other (Statements,
IONAL EFFECTIVEN
˭ Death Marital Breakdowns,
ANC
˭ Buybacks Transfers)
AL PERFORMAN
˭ Compliance with PSAs
2 STRATEGY 3 ˭ System availability and performance
3. FINANCIAL PERFORMANCE & RISK MANAGEMENT
AT
˭ Cost Effectiveness Measurement (CEM) cost per member
ER
CE
˭ Adherence to client fee budgets
OP
˭ Payout calculation accuracy
4. PEOPLE & CULTURE
4
˭ Leadership effectiveness index
PEO
P L E & C U LT U R E ˭ Engagement
˭ Absenteeism rate
˭ Voluntary turnover rate
APS BUSINESS PLAN 2020 18RISK MANAGEMENT
All organizations face risks, and APS is no different. We recognize that APS will face uncertainty and risk in achieving
its mission and strategic objectives. The key is to acknowledge the reality of this risk and use it as an opportunity
to plan ahead. Risk management is a primary accountability of APS and a key factor in ensuring the services
we deliver are accurate, timely and efficiently delivered; it is an integral component of our quality and efficiency
measurements. APS has a robust corporate risk management framework which has been instrumental in delivering
on our commitment to identify, assess and manage our corporate risks.
The 2020 Business Plan outlines many initiatives which will bring significant benefits to our clients and their members,
pensioners and employers through innovation and change; with these come risks and rewards. Further, with any initiative
and projects undertaken, there are finite resources available. At APS, we have a balanced approach, and will continue with
our risk management philosophy where the benefits are weighed against risks to ensure our decisions and levels of risk-
taking are assessed and measured to maximize our benefits, commensurate with our corporate risk appetite.
APS BUSINESS PLAN 2020 19LOOKING AHEAD
This Business Plan focuses on 2020; but the work does not stop there. As outlined in the business planning process
on page four, we are committing to a more thorough, collaborative process.
We will review and assess the major projects and initiatives as they progress, and will be strategizing about what the
next improvements to our services and support can be.
The collaborative business planning process will help us understand the needs of clients and their members,
pensioners and employers. This will enable us to prioritize projects and to be effective within the directed budget.
The process will also help us to be more intentional about following-up on projects and initiatives after they launch.
We are committed to collaboration, transparency and building trust with our clients so that we can face any future
changes together.
Our focus on the reliability of our core services, on improving processes and building up our people and culture will
support the success of our organization and our clients in the years to come.
APS BUSINESS PLAN 2020 20APPENDIX A 2020 BUDGET OVERVIEW The 2020 APS budget reflects a strong focus on providing cost-effective and efficient pension benefits administration to the members, pensioners and employers that we serve and to the clients that we support. In 2020, APS will be focusing on the provision of reliable core pension benefits administration services, the implementation of several projects to improve and innovate our services, and building on a culture of service excellence with an engaged workforce. APS was challenged to find ways to reduce costs in a complex operating environment while still meeting the needs of the clients we support and being cognizant of risks. The mandate from the Government of Alberta is to control costs, and they have directed a reduced budget from 2020 through 2023. APS' 2020 operating budget of $57.6M represents an overall decrease of $2.5M (4.2%) from the 2019 APS Board-approved budget. Client needs are balanced and prioritized in the Business Plan initiatives and resources have been designated to support the activities in the Business Plan to achieve maximum benefit to our stakeholders. The cost per member (based on CEM Benchmarking Inc. methodology) is anticipated to decrease from $175 to $173, which is approximately $46 (21%) less than the estimated cost per member of the peer average of comparable Canadian public sector organizations. The reductions in the 2020 operating budget are realized through workforce reductions, decreased discretionary spending and decreased external contractors. These decreases are offset to a degree by additional expenses to implement changes required as a result of joint governance, plan text changes, infrastructure and services to bolster the security and governance of data and other projected inflationary increases. Capital investment will see a decrease from $2.9M in 2019 to $2.5M in 2020. However in 2020, capital investment includes necessary upgrades to our pension benefits administration systems and several client-driven initiatives to improve member, pensioner and employer experience, and to support client requirements for more timely access to data and analytics. In addition, APS will need to prioritize continued capital investments to maintain and support existing services and infrastructure along with new innovations and projects. APS BUSINESS PLAN 2020 21
BUDGET & FINANCIALS
($ MILLIONS) 2019 BUDGET 2019 FORECAST 2020 BUDGET
APS OPERATING EXPENSES
Salaries and Benefits 38.1 36.1 36.6
Contract Services 4.2 4.2 3.1
Office Related Expenses 5.7 6.1 5.2
Software Licensing and Support 6.2 6.1 7.2
Amortization 5.9 5.6 5.5
TOTAL APS OPERATING EXPENSES 60.1 58.1 57.6
TOTAL APS OPERATING EXPENSES IS COMPRISED OF:
Pension Benefits Administration Services 56.1 54.7 52.7
Joint Governance Requirements 0.9 0.6 1.5
Optional Services, Plan Corporations 0.0 0.9 1.4
Board Services 2.5 1.6 1.7
Corporate Services 0.6 0.3 0.3
TOTAL APS OPERATING EXPENSES 60.1 58.1 57.6
TOTAL APS CAPITAL INVESTMENT 2.9 3.2 2.5
Total CEM Cost Per Member $181 $175 $173
# of Active Members and Pensioners (excludes deferred members) 331,257 332,029 332,029
APS BUSINESS PLAN 2020 22Building Related,
Plan Specific (MEPP, Tier II)*, $2.6 M (4%)
2020 OPERATING BUDGET $2.2 M (4%)
Corporate Support (CEO, HR,
IS $57.6M Finance, Communications, Legal),
$4.6 M (8%)
The 2020 APS budget reflects a strong focus on providing Board Governance, Risk & Control,
$1.6 M (3%)
cost-effective and efficient pension benefits administration
to the members, pensioners and employers that we serve Joint Governance & Operating Projects*,
and to the clients that we support. $2.0 M (4%)
Optional Services*, $1.4 M (2%)
Core Services*,
$43.2 M (75%)
(M) %
*Pension Services $48.8 85%
Governance, Risk & Control $1.6 3%
Building Related $2.6 4%
Corporate Support $4.6 8%
$57.6 100%
APS BUSINESS PLAN 2020 23CORE SERVICES $43.2M
2020 CORE SERVICE COST THESE SERVICES INCLUDE:
BREAKDOWN ˭ Client services ˭ Employer enrollment, support, education and compliance
˭ Members Services Contact Centre ˭ Compliance, regulatory and plan financial reporting
We strive to deliver a high standard of pension benefits ˭ Pension payments ˭ Software licensing and support: maintenance & updates to
administration services to all of our clients, members, ˭ Contributions management, benefits member service software (Compass), data storage, software
pensioners and employers. calculations and disbursements licenses, cybersecurity
˭ Member and pensioner management ˭ Amortization: long-life capital investments (primarily
and communications Compass) are expensed over the expected asset life
Pension Payroll & Trust Fund Accounting, Other,
3% 3% Member Services,
15%
Analytics, 3%
Amortization,
12%
Plan Operations
(Retirements, Administration, etc.),
12%
IT, Security, Data Processing, Special Calculations, MPOs, Deaths,
17% 4%
Terminations, 5%
Buybacks and Transfers, 4%
Compass Updates, 5%
ER Services & Training, 7%
Software Licenses, 7% Pension Policy, 3%
APS BUSINESS PLAN 2020 24APPENDIX B
CEM COMPARISON:
PERFORMANCE & SERVICE CEM Benchmarking Inc.CEM
Total Service
TOTAL ScoreSCORE
SERVICE
APS’ operating costs, membership numbers and 85 83
transactional information are submitted annually to
CEM Benchmarking Inc. for comparison to our peer
81 81 81 81 81
80 79 82
group in a comprehensive survey. While our peer group
78 78 78
includes Canadian public sector pension administrators 77
76
of a similar size to APS, some the largest in Canada, we
operate in a more complex pension environment than 75 74
most. APS administers nine plans with often distinct
71
rules and pension options. 70
70 69
65
2011 – 2018 Actual
65
2019 – 2022 Projected
60
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
APS Peer Median
CEM total service score per member will continue to be a key indicator of how APS’ service compares to peers.
APS aspires to maintain the relative total service score ranking and will strive to make incremental improvements over time.
APS BUSINESS PLAN 2020 25APPENDIX C
CEM COMPARISON: COST PER MEMBER
PEER AVERAGE
2017 – 2018 Actual
2019 – 2022 Projected with
Canadian Consumer Price Index
APS
2017 – 2018 Actual
2019 – 2022 Projected
Based on the most recent 2018 CEM Benchmarking Inc. survey, APS service costs are $35 (17%) per member lower than the peer average. APS cost per member is
projected to remain well below the peer average in 2020.
APS cost per member will likely remain relatively flat in 2021-2022 as minimal membership growth is anticipated and pension benefits administration costs remain
fixed resulting from budget constraints. Should plan membership decrease slightly, APS should continue to maintain a cost advantage.
APS BUSINESS PLAN 2020 26You can also read
