Switching super fund administrators can be a huge hassle, but it is certainly worth the pain if members end up with better services. News Limited took the plunge in July last year, giving members access to services like Interactive Voice Response, a Web site featuring live data access, member publications and in the future, a range of super and financial tools.
Here is a guide on what to look for in an administration provider:
The People
n Openness and honesty
n A satisfied workforce with low staff turnover
Resources & Capabilities
n Level and type of ongoing resources — will these be adequate for the amount of work required?
n Does the provider have specialists who understand the complexity of your fund?
n Is the provider used to dealing with funds similar to your own?
n Can the provider actually deliver on the date it says it can?
Test the waters
Visit the administration centre and speak to some of the employees. This will give you a much better feel for the organisation and the way you and your members will be treated.
Before making a final decision, get feedback from other large funds that have switched over to the administrator.
Look at the administrator’s processes and documentation, and how thorough it is. If processes are well documented, it will not matter if there is a change of personnel because somebody else can continue. Staff turnover is an issue because it can be very disruptive. When you go from one year to the next and you don’t have anyone on the team in that 12-month period who was at the last annual review, you will have problems.
Last, but definitely not least, look at a provider’s ability to deliver the goods on time.
Costs
Cost is obviously relevant in the choice of an administrator, but it’s not the be all and end all. Look at the cost in relation to the standard of service you’ll be getting. If something goes wrong, or the standard of service is not what you expected, it will cost you in the end.
Ensuring a smooth transition
A well-run transition process relies heavily on the experience of the administrator and its team. Speak to other clients about how the provider handled transitions in the past. Ensure that the administrator has experience in transitioning funds, particularly funds similar in size and nature to your own, and that the personnel are qualified, experienced and committed to getting the job done on time.
How the provider plans to handle the transition is crucial. Does it have a project manager who is going to look after the entire process, or are the people who are going to be doing the day-to-day administration also handling the transition process? If it’s the latter, it’s not going to work. You really need a specialist implementation team.
Make sure the provider prepares a detailed implementation plan for the project.
Good communication
Good communication is essential in making a transition go smoothly. You can’t afford to just hand everything over to your provider and expect it all to happen. You’ve still got to have some contact and keep control of the process.
In particular, it’s important to hold regular meetings with both the outgoing and incoming providers and to monitor their progress. Companies should also communicate the changes to fund members and to others affected, particularly the payroll department.
