Oracle

Case study

Implementing web technology and online enrolment to enhance the member experience.

The situation

Oracle is the world's largest enterprise software company. Their goal is to make sure that their customers spend less money on their systems while getting the most up-to-date and accurate information from them.

In the Summer of 2004, Oracle relaunched their defined contribution plan and as a result, members in the 'old' plan and new hires needed to join the new plan with maximum efficiency and minimal disruption.

As a consequence, Oracle (UK) was looking to improve the delivery and communication of pension benefits, and as a result, Towers Watson was appointed as Oracle's pension administrator, not surprisingly, web delivery of pensions information to their pension plan members was a high priority.

The solution

Towers Watson had already shown Oracle the ePA web application through which Oracle plan members could access details of their funds and switch and change investment options. We approached Oracle and suggested our online enrolment module, integrated within ePA, might be the solution to meet their ongoing needs.

Essentially, a new hire or a member of the 'old' plan would be registered on our system and be given a unique ID to access ePA through the Oracle intranet or internet. The employee would then be invited to join the new plan online and be able to complete contribution and investment choices. The data is then electronically transferred to Oracle payroll without the need for manual intervention or paper processing.

There were some complications to overcome. Contributions are paid by salary sacrifice so the contribution selection process had to be configured accordingly.

The result

85 per cent of those expected have joined the new plan through online enrolment encompassing over 2,300 members.

Once the employee has joined the plan through ePA and their first contribution has been invested, the member can then rely on ePA to present details of the contribution transactions, unit price data, fund value as well as provide access to the online booklet.

Oracle members can switch assets and change investment options. In fact, apart from complex queries, the majority of the information required is available through ePA.

ePA is generally available to active and pensioner members, the intention is to extend ePA to Oracle's deferred members so they can keep in touch with their fund values beyond employment with Oracle.

The high tech solution is very much in keeping with Oracle's own philosophy.

Enhancing the member experience

Having successfully relaunched the defi ned contribution plan, Oracle was keen to enhance the member experience. This was particularly relevant where Oracle employees were members of both the 'old' plan and the 'new' plan. For these members, 'old' plan assets were held in a range of insurance company policies – complicating the administration. Whilst 'new' plan pension details could be accessed by members through Towers Watson's ePA web application, the 'old' plan details had to be obtained by the Towers Watson administration team from the insurance company.

In order to simplify the administration and improve member access to 'old' plan information, the insurance company policies were transferred to a single trustee investment plan.

The new investment plan was launched on 1 May 2005 and Towers Watson was able to provide these members with access to their full plan data, covering both the 'old' plan and the new plan investments. A consolidated view of the member's assets can be accessed through the ePA web application.

In addition, members can transact in a 'real time', self service capacity, with the ability to switch assets across the range of 'old' and new plan investment options seamlessly.