1. 1 Texas Association of State Systems for Computing and Communications August 10, 2011 Employee Benefits Today and Tomorrow

2. 2 ERS Strategy Increase Retirement Security Optimize Group Benefits Engaging Stakeholders Enhancing Agency Performance and Accountability

3. 3 ERS Challenge: Enhancing Agency Performance and Accountability Lower administrative costs/reduced Total Cost of Ownership Make systems more flexible User driven programming of complex rules engine Maintain and enhance security Improve our business intelligence Enterprise content management Digital documentation

4. 4 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 development Long term approach with short term (incremental successes) gains Be 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

5. 5 ERS Challenge: Enhancing Agency Performance & Accountability Approach: Migrated rules into new rules management system Completed one unit in 2.5 months Business unit develop rules 40% improvement in processing performance 50% improvement in online response time Rules written in English and not programming code

6. 6 ERS Challenge: Enhancing Agency Performance and Accountability Security Ensure that member data is protected from unwarranted exposure. Scan network and data stores and identify areas of concern Validate online application security for all self service functions. Validate all communication protocols with vendors and agencies to ensure secure transmissions Adhere to our robust Information Security Manual Proactively monitor network devices for suspicious activity Implement data loss prevention/protection toolset

7. 7 ERS Challenge: Enhancing Agency Performance and Accountability Technologies, Strategies, and Tools to Manage Information “DATA ON DEMAND”

8. 8 ERS Challenge: Enhancing Agency Performance and Accountability ECM & Related Architecture Scalable – had to support large volumes of data Reliable – had to be accessible to end users when they needed it Secure – had to protect confidential information

9. 9 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

10. 10 ERS Challenge: Enhancing Agency Performance and Accountability Document Imaging Original State Only selected inbound documents individually scanned, without OCR Manually classified and saved into various systems No enterprise search capability Completed State 100% of all inbound documents are scanned in large batches, with OCR Documents are automatically classified and saved with appropriate metadata using barcodes Documents are now able to be searched and retrieved using enterprise wide search on full content and meta data

11. 11 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

12. 12 Business Intelligence Original State No internal BI system was available Heavy reliance on IS development staff to do ad-hoc queries for assistance with basic ‘what-if’ analysis and reports Heavy reliance on actuarial vendor for in depth ‘what-if’ analysis and reports Completed State End users access BI system using Microsoft Excel Self service report creation for end users Supports basic and in depth ‘what-if’ analysis

13. 13 Business Intelligence Engine Real-time Ad Hoc Reports in Desktop Applications Data Abcdefghijklmna aposidu q e r fv asdf Abcdefghijklmna aposidu q e r fv asdfAbcdefghijklmna aposidu q e r fv asdf Abcdefghijklmna aposidu q e r fv asdf Abcdefghijklmna aposidu q e r fv asdfAbcdefghijklmna aposidu q e r fv asdf Now is the time for all good men to create a simulated report for a powerpoint presentation. Excel MS Access PDF/Word PowerPoint Presentation Subtitle PowerPoint

14. 14 BI Data Warehouse One version of the truth Security Acceptable Margin of Error

15. 15 Retirement Reporting Member Estimated Retirement Date by Age Brackets CalendarMay 2011 Member Estimated First Retirement Eligibility Year2011 Active RetiredActive Estimated Retirement Date Member Age Brackets2011-04-302011-05-312011-06-302011-07-31Grand Total 45-49130204347240 50-542,0731091041092,395 55-593,9641081391444,355 60-645,0439225485,208 65-691,181710141,212 70-74318396336 75-79101010102 80-8417000 85-8930003 Grand Total12,83033933136813,868

16. 16 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

17. 17 ERS Challenge Make smarter decisions Minimize administrative costs – maximize benefit revenue Provide exceptional customer service and benefits Get employees involved in their own health and retirement planning choices

18. 18 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

19. 19 Engaging Stakeholders ERS Facebook Page – Encourages two-way communication

20. 20 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

21. 21 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

22. 22 Engaging Stakeholders New Website – Gateway to Member Services

23. 23 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