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Texas Association of State Systems for Computing and Communications

August 10, 2011

Employee Benefits Today and Tomorrow

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ERS Strategy

Increase Retirement SecurityOptimize Group BenefitsEngaging StakeholdersEnhancing Agency Performance and Accountability

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ERS Challenge: Enhancing Agency Performance and Accountability

Lower administrative costs/reduced Total Cost of OwnershipMake systems more flexible

User driven programming of complex rules engineMaintain and enhance security Improve our business intelligence

Enterprise content management Digital documentation

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ERS Challenge: Enhancing Agency Performance & Accountability

Save money by considering the Total Cost of Ownership (TCO) and looking for a strong Return on Investment (ROI).

Use a non-traditional approach for system developmentLong term approach with short term (incremental successes)

gainsBe nimble and portable to move with the technology as it

changes. Remain technology agnostic by taking the “Lego approach”Quickly and and efficiently update business rules as

requirements change

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ERS Challenge: Enhancing Agency Performance & Accountability

Approach:Migrated rules into new rules management systemCompleted one unit in 2.5 monthsBusiness unit develop rules40% improvement in processing performance50% improvement in online response timeRules written in English and not programming code

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ERS Challenge: Enhancing Agency Performance and AccountabilitySecurityEnsure that member data is protected from unwarranted

exposure.Scan network and data stores and identify areas of concernValidate online application security for all self service functions. Validate all communication protocols with vendors and agencies

to ensure secure transmissionsAdhere to our robust Information Security ManualProactively monitor network devices for suspicious activityImplement data loss prevention/protection toolset

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ERS Challenge: Enhancing Agency Performance and AccountabilityTechnologies, Strategies, and Tools to Manage Information

“DATA ON DEMAND”

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ERS Challenge: Enhancing Agency Performance and AccountabilityECM & Related Architecture

Scalable – had to support large volumes of dataReliable – had to be accessible to end users when they needed

itSecure – had to protect confidential information

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ERS Challenge: Enhancing Agency Performance and Accountability Content Migration

Original State• Files and data were distributed across disparate systems• Files stored in disorganized directory trees• Many files were no longer needed• Files and data were difficult to locate or retrieve

Completed State – Files are now:• Organized• Searchable contents and metadata• Maintainable

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ERS Challenge: Enhancing Agency Performance and Accountability Document Imaging

Original StateOnly selected inbound documents individually scanned, without OCRManually classified and saved into various systemsNo enterprise search capability

Completed State100% of all inbound documents are scanned in large batches, with OCRDocuments are automatically classified and saved with appropriate

metadata using barcodesDocuments are now able to be searched and retrieved using enterprise

wide search on full content and meta data

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ERS Challenge: DATA Driven Decisions

Decisions must be driven by data Business intelligence warehouse Identify program cost drivers Allows us to share data and incorporate our member’s

feedback

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Business Intelligence

Original StateNo internal BI system was availableHeavy reliance on IS development staff to do ad-hoc queries for assistance

with basic ‘what-if’ analysis and reportsHeavy reliance on actuarial vendor for in depth ‘what-if’ analysis and reports

Completed StateEnd users access BI system using Microsoft ExcelSelf service report creation for end usersSupports basic and in depth ‘what-if’ analysis

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Business Intelligence Engine

Business Intelligence

Engine

Real-time Ad Hoc Reports in Desktop ApplicationsData

Data

Data

Data

Data

Data

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Now is the time for all good men to create a simulated report for a powerpoint presentation.

Now is the time for all good men to create a simulated report for a powerpoint presentation.

Now is the time for all good men to create a simulated report for a powerpoint presentation.

Now is the time for all good men to create a simulated report for a powerpoint presentation.

Excel

MS Access

PDF/WordPowerPoint PresentationSubtitle

PowerPoint

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BI Data Warehouse

One version of the truthSecurityAcceptable Margin of Error

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Retirement Reporting

Member Estimated Retirement Date by Age BracketsCalendar May 2011Member Estimated First Retirement Eligibility Year 2011Active Retired Active

Estimated Retirement Date

Member Age Brackets 2011-04-30 2011-05-31 2011-06-30 2011-07-31 Grand Total45-49 130 20 43 47 24050-54 2,073 109 104 109 2,39555-59 3,964 108 139 144 4,35560-64 5,043 92 25 48 5,20865-69 1,181 7 10 14 1,21270-74 318 3 9 6 33675-79 101 0 1 0 10280-84 17 0 0 0 1785-89 3 0 0 0 3Grand Total 12,830 339 331 368 13,868

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ERS Challenge: Engaging Stakeholders

Employees and retirees choose how and when they want to interact with us

Benefit transactions are quick, comprehensive, and understandable

Benefit programs meet the needs of the workforce

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ERS Challenge

Make smarter decisionsMinimize administrative costs – maximize benefit revenueProvide exceptional customer service and benefitsGet employees involved in their own health and retirement

planning choices

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ERS Challenge: Engaging Stakeholders

We provide information in the method and manner you prefer --- Print – mailed and electronic Web – website, webcasts In-person – group presentations, fairs, personal counseling Social media Video Telephone – IVR, live agents Looking at live chat, mobile applications

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Engaging StakeholdersERS Facebook Page – Encourages two-way communication

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ERS Challenge: Engaging Stakeholders

ERS members share responsibility for their health, retirement security

Your lifestyle choices affect yours – and all of our – benefit costs Provide you tools to make better

choices

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ERS Challenge: Engaging Stakeholders

State has limited funding, faces rising costs ERS asked to study long-term sustainability of pension and insurance programs

See how various benefit design changes affect the insurance funding gap

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Engaging StakeholdersNew Website – Gateway to Member Services

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Questions?

The mission of the Employees Retirement System of Texas is to enhance the lives of our customers through

the delivery of quality benefits at reasonable cost.

www.ers.state.tx.us