Beacon Application Services and PeopleSoft:
A State Government Success Story
MERS Retires PeopleSoft 7 - Realizes Benefits of PeopleSoft 8
The Municipal
Employees’ Retirement System of Michigan (MERS) is an agent
multiple-employer, statewide public employee retirement plan providing both
defined benefit and defined contribution retirement benefits to over 550
employers with more than 16,000 retirees and 38,000 active members. In an
effort to remain a premier provider of service to its constituents, MERS
committed to executing its business processes via internet-based solutions.
While the PeopleSoft 7.5 system fulfilled the retirement plan administration
requirements, the potential for streamlined business process, self-service
capabilities, electronic issuance of invoices to municipalities, and
on-demand calculation of estimated benefits could only be delivered through
a secure, yet readily accessible means – the web.
Historically, MERS used PeopleSoft Human Resources to collect and maintain participant data for use by PeopleSoft Pension Administration. While PeopleSoft Pensions automatically calculated and created a trustee extract file, processes and resultant information was delivered to MERS customers via 1990s technology – electronic files and paper.
Bills were issued to member organizations using PeopleSoft Billing; cash payments were managed through PeopleSoft Receivables while accounting information was stored and statements produced through PeopleSoft General Ledger. The time and effort to produce these labor-intensive documents – not to mention the cost – could be greatly improved.
In order to fulfill its mission of providing cost-effective pension plan administration and more closely unite its employees, member organizations and plan participants, MERS needed to change its way of doing business.
The Challenge
After examining the situation, Beacon Application Services Corporation
(Beacon) readily understood the challenge: processing large volumes of data
for a significant number of plan participants who wanted immediate and up to
date access to their benefits; increased and more efficient cash management
through self service by providing automatic delivery of invoices to
municipalities; and the need to handle varied and disparate sources of data.
There was only one way the challenges could be met – through PeopleSoft 8
pure internet-based architecture.
However, MERS also had an internal goal: minimizing initial and on-going costs while delivering these solutions to its constituents rapidly.
The PeopleSoft
– Beacon Solution
Beacon serviced this need through a small team of experienced professionals
who began the project in June 2002 and deployed the full solution by October
2002. Beacon consultants worked with a team of MERS resources to upgrade the
PeopleSoft 7.5 versions of HRMS and Financials to versions 8.3 and 8.4
respectively while working with MERS to implement the PeopleSoft Customer
Portal and eBill/Payment products.
Not only was this solution delivered on-time and on-budget for a fixed-fee, but go-live occurred two months before the fiscal year allowing adequate time for member organizations and plan participants to become trained on a new system.
Benefits
MERS now has an integrated Internet based ERP solution to encompass the
enrollment, servicing, and accounting for its Pension plans. Portal
capabilities extend the reach of the applications and allow easy secure
access. Member organizations are able to receive billing and make payments
electronically, reducing processing time and effort. Participants and member
organizations can easily make timely and accurate changes to their
information and elections. Email allows electronic exchange of other types
of relevant information. Member statements and financial reporting are
produced and distributed efficiently and electronically.
How Beacon
Added Value
Beacon leveraged its technical and functional knowledge of PeopleSoft
Internet Architecture and business process best practices to deliver a
system that meets the needs of MERS, its member organizations, and its plan
participants. Participants can now readily change their profiles, request a
benefit estimate or contact a Service Representative via the Customer
Portal. Municipalities can review their bills, make a payment, submit wage
and service data or contact a Billing Representative via eBill/Payment. MERS
achieved their goal of premier service by teaming with Beacon and
PeopleSoft.
© 2008 Beacon Application Services Corporation. All rights reserved.