State of Wyoming Strategic Plan Wyoming Retirement System

Transcription

1 State of Wyoming Strategic Plan Wyoming Retirement System

2 Table of Contents Introduction... 3 Overview... 4 Functions... 5 Organization Chart... 6 Shared Vision, Mission, and Values... 7 Overall Goals... 7 Strategic Performance Measures... 8 Selected Performance Indicators... 9 Balanced Scorecard Methodology Summary Individual Section Mission Statements APPENDIX A Overall Agency..A1 Accounting Section A8 Communications & Deferred Compensation Section A13 Information Technology Section A19 Investments Section..A22 Operations Section.A26 2

3 Introduction This document defines the Wyoming Retirement System s (WRS) strategic plan for 2011 through The strategic plan and the balanced scorecard (BSC), a tool to measure our progress, are used to help us determine what is important today and provide direction for the future. There are three main levels to the strategic plan. The first level was established by our management team and includes the overall vision, values, mission, goals and performance measures for the entire agency. Our vision inspires us to partner to build financial security for our members and their families and our mission helps us concentrate on the day-to-day activities of providing expert administration and responsible investment of Wyoming s public retirement and supplemental savings programs. The organizational values help provide a code of conduct for WRS employees. There are also seven broad goals that focus on what is important for us to achieve as an agency. Please reference Appendix A for the overall BSC for WRS. The second level of our strategic plan involves the individual business sections including: Accounting, Communications, Deferred Compensation, Information Technology, Investments, and Operations. Each program has developed its unique mission statement and individual program goals, performance measures and strategies, i.e., a BSC at the program level to help accomplish the overall goals for the agency. The individual section BSCs are also found in Appendix A. The third level and most important part of any strategic plan is the individual employee level. Individual employees are the ones who carry out the program-level BSC, and their participation ultimately decides the success of the overall BSC. We are still working on cascading down to the employee level, which will include individual goals and performance measures for each employee. The strategic plan continues to evolve. It is a result of the collaborative approach taken by WRS s leadership to develop a comprehensive and usable strategic plan. This plan is not only a charter for WRS, but it also communicates important information to our employees as well as our stakeholders, especially the public. 3

4 Overview WRS provides retirement benefits to most public employees in Wyoming. WRS currently administers nine pension plans along with the Deferred Compensation 457 Plan (457 Plan), which is an elective supplemental retirement plan. WRS has grown to encompass almost all non-federal public employees in Wyoming, covering employees of the state, school districts, cities and towns, political subdivisions, and institutions of higher learning. As of 1/1/2011, WRS served over 41,000 members employed by 696 participating employers and over 22,000 retirees. WRS Membership as of 1/1/2011 Plan Retirees Actives Public Employees 19,742 35,828 Air Guard Firefighter 2 24 Law Enforcement 719 2,879 Volunteer Fire 959 2,232 Paid Fire B Warden, Patrol, & DCI Volunteer EMT Judges Paid Fire A TOTAL 22,060 41,833 Source: GRS Valuations Reports 1/1/11 Technology Replacement & Modernization: The Legislature and the Governor approved approximately $7 million, or about half of the funding, needed for WRS Technology Modernization & Replacement Project. WRS issued a Request for Proposal to pension administration system providers, selected a developer and then began building a new system in the fall of Running parallel to the vendor selection process are data assessment activities to validate the accuracy of data prior to the transition to a new system. This project is expected to slow growth in staff and administrative costs. For example, improved 4

5 accuracy of data, together with better technology, will allow WRS to automate many aspects of benefit calculations and contribution posting. It will also allow WRS to achieve better response times when providing service to members. Budget: For the Biennium, the Legislature approved an $18.3 million budget for WRS, including roughly $7 million for WRS Technology Modernization & Replacement Project. The total project cost is estimated to be $15 million. Functions WRS primary functions include the following: Accounting developing and administering WRS budget, allocating overhead costs among the different plans and producing the comprehensive annual financial audit report Audit internal audit function strengthens the organization by identifying organizational improvements and the external audit function ensures an equitable environment for all participating employers Communications providing member and employer communication & education on-site with a curriculum of educational seminars about pension and 457 plan features, planning for retirement, and investing for retirement; additional communications methods include WRS Web site, statements, newsletters, blasts, plan handbooks, and social media Deferred Compensation administration of a governmental 457 supplemental savings plan Information Technology support services for all WRS operations, particularly pension plan administration Investment invest the assets of all the pension plans in a combined strategy and oversight of the 457 Plan s investment lineup Legal in-house legal counsel to advise executive director, support the investment team and negotiate investment contracts, monitor securities litigation on behalf of the Board and legal representation pertaining to benefits administration Operations administrative functions related to pension plan members: member benefit counseling and calculations, customer service to members, administration of member account data, posting of incoming contributions and retiree payroll 5

6 Organization Chart The executive director oversees a staff of 37 employees headed by a management team that focuses on investing the System s assets, administering the retirement plan and obtaining necessary expertise from actuarial and other consultants. 6

7 Shared Vision, Mission, and Values The following are the shared vision, mission, and values for WRS: Vision Partnering to build financial security for members and their families Mission Providing expert administration and responsible investment of Wyoming s public retirement and supplemental savings programs Values The Wyoming Retirement System has four values which serve as a code of conduct for its employees: Integrity Accountability Commitment Excellence Overall Goals The seven overall goals for WRS are: 1. Increase Operational Efficiency 2. Advance the Level, Accuracy and Timeliness of Customer Service 3. Cultivate Staff Competencies and Abilities 4. Improve Investment Capabilities and Results 5. Educate and Enroll Members and Employers 6. Strengthen Communication and Partnerships with Key Stakeholders 7. Enhance the Stewardship of WRS Entrusted Resources 7

8 Strategic Performance Measures WRS executive director is hired by the board and is committed to carrying out this strategic plan. To assist WRS in achieving its seven goals, the following strategic performance measures have been established. Goals are shown in bold and strategic performance measures in italics. 1) Increase operational efficiency. a. Achieve 100% of operational uptime for pension administration system. b. Develop and maintain desk manuals for each position. 2) Advance the level, accuracy and timeliness of customer service. a. Benefit estimate response time within 15 business days on average. b. Process all retirements on time. c. Process all refunds upon receipt of needed documentation and final contributions. d. A majority of our customers rate our service excellent or good. 3) Cultivate staff competencies and abilities. a. Provide an average of 16 hours of training per employee each year. 4) Improve investment capabilities and results. a. Rank in the top 50 th percentile of public pension funds on an annual basis. b. Achieve an annual rate of return of 8%. 5) Educate and enroll members and employers. a. Increase the total annual contributions to the Deferred Compensation Plan each year. b. Achieve an annual average attendance of 10 or more employees per seminar. c. Deliver a minimum of 240 member seminars each year throughout all regions of Wyoming. d. Enhance employer understanding and participation. e. Increase the average monthly benefit each year. 6) Strengthen communication and partnerships with key stakeholders. a. Accomplish 100% of legislative initiatives. 7) Enhance the stewardship of WRS entrusted resources. a. Full allocation of overhead and shared costs across all plans. b. Minimize the number of findings on the State Auditor s Office Information Technology Audit. c. Receive an unqualified opinion on WRS system-wide financial audit. d. Gradual progress toward full funding of pension obligations. 8

9 Selected Performance Indicators WRS has selected five performance measures to graphically highlight. Additional measures are in the BSCs. Please note, per Wyo. Stat (c), WRS is allowed to report on a calendar year basis, rather than fiscal year basis. Rolling Ten-year Return and Net Annual Investment by Calendar Year 30.00% 20.00% 20.41% 23.10% 10.00% 9.57% 8.63% 12.09% 13.09% 7.62% 1.72% 4.23% 0.00% % % Rolling Ten-Year Return Target 8% Net % % % % 9

10 Overall Customer Satisfaction Rating for Excellent and Good Responses 84.0% 83.1% 82.0% 80.0% 78.0% 76.0% 74.0% Active Retirees 72.0% 72.2% 70.0% 68.0% 66.0%

11 Benefit Estimate Response Time in Business Days Working Days Actual Target

12 Average Monthly Benefit by Calendar Year for Public Employee Plan and Percent Increase 12

13 Deferred Compensation Contributions in Millions and Percent Increase 13

14 Balanced Scorecard Methodology The Wyoming Retirement System uses the BSC as a tool for managers and employees to determine if we are meeting our goals. While the strategic plan covers a four-year period, BSCs are updated annually. The BSC ensures that we focus on four important areas: Customer service, Improving processes, Employee learning and growth, and Using our resources effectively and efficiently. The Performance Indicators are visual representations of how well WRS is doing in various areas. The BSC is a scorecard that allows readers to quickly identify goals, performance measures and strategies. The overall BSC and the various section BSCs can be found in Appendix A of this document or on our Web site at: Summary One of the most important parts to any strategic plan is the discussion and planning process that goes into developing the plan. The next important component of the plan is putting the strategies into action. Without this vital step, the plan is just a document. WRS is serious about improving as an agency and being accountable for resources entrusted in its care. This strategic plan helps us do that by guiding actions and communicating the results. 14

15 Individual Section Mission Statements Accounting: Facilitate the Financial needs of WRS and Account for All Investment and Accounting Activity Communication and Deferred Compensation: Partnering to Empower Members in Achieving Retirement Readiness through WRS Effective Communication, Education and Administration of the Supplemental Savings Plan Operations: As a Team, Provide Superior Account Administration, Member Services and Education Information Technology: WRS IT Will Develop, Manage, and Maintain a Technology Infrastructure and Environment that Operates in a Manner That is Cost Effective, Transparent, Seamless, Sensible, Proactive and Responsive Investments: Provide Expert Portfolio Management of WRS Assets Through Research, Analysis and Investment 15

16 APPENDIX A WRS Balanced Scorecards 16