Towers Watson will shift member administration for the 40-plus corporate super funds it advises away from IBM SuperLife.
Under the proposed arrangement Link Super, a wholly owned Link Group subsidiary, will take over the provision of administration services currently provided to Towers Watson and its clients by IBM SuperLife (IBM). Under the arrangement, the business will transition over a three month period with an aim to complete by 31 March 2011. It is expected that the existing IBM administration employees currently dedicated to the Towers Watson account will transition to Link and that existing client relationships and service provision will continue without disruption.
Towers Watson was the final remaining major client of IBM’s member admin business, which last year also saw Russell move off its platform, in that case into a self-administered arrangement.
Andrew Boal, Managing Director of Towers Watson Australia said, “Our clients have benefited from the improved technology and service levels that IBM has delivered over the last three years. They have enabled us to enhance our administration IT environment and efficiency and reduce member processing times, increasing our client satisfaction levels significantly. Moving forward we will be able to further enhance the levels of service we offer our clients by leveraging Link’s innovative technology.”
“We are excited about Link’s state of the art administration platform, aaspire, and its pioneering employer portal, both of which represent the latest in technology”, Boal said. “We have undertaken significant due diligence and are very excited about the Link offering and what it will deliver for our clients. In particular, we have been very impressed by the aaspire platform’s ability to configure and handle complex defined benefit arrangements.”
Link is a global third party financial record keeper with associated value added services. Link Group has over 2000 employees in 10 countries. It provides superannuation administration services in Australia to 27 client superannuation funds and 13 pension clients, with over 350,000 employers and approximately 4 million members. The membership base accounts for over $30 billion in assets under management.
The CEO of Link Super, Phillip Muhlbauer, said “This is a great opportunity for both Link Super and Towers Watson to partner and focus on improving outcomes for clients and members through continued investment in technology and services. We look forward to growing the client base with Towers Watson and believe that through this partnership we will be able to deliver a premium and competitive service offering”.
“It was always Link’s intention to expand its operations in Pension and Superannuation and this opportunity provided by partnering with Towers Watson enables us to achieve this goal”, Muhlbauer said.
Towers Watson will continue to provide actuarial, consulting and administration services to Australian superannuation funds, and the employers who support them, and this agreement would support its business well into the future, Boal concluded.