IT Roadmap Presentation to FCERA Board of Retirement Barbara Scheffels, Retirement Practice Leader Akio Tagawa, Principal Linea Solutions, Inc. 4/15/2009

Agenda Who we are / What we do What we did Findings / Recommendations IT Initiatives Timelines Cost Estimates What is today’s agenda? 2

Who we are / What we do  Linea is a Los Angeles-based firm that was founded in 1999  We focus on IT and management consulting for defined benefit plans  Our work ranges from strategic consulting to procurement projects to implementation project management  We work on various types of software systems, including document management, pension admin systems, general ledger systems, etc. What is Linea Solutions, Inc.? 3

Who we are / What we do  We have worked with 12 other 1937 Act retirement systems:  We are independent: we do not resell any software  We have consulted in virtually every kind of IT project for public retirement systems What is Linea Solutions, Inc.? ACERACCCERAICERSKCERA OCERSMCERA (Marin) MCERA (Merced) SamCERA SCERASDCERASJCERAVCERA 4

What we did Linea Solutions, Inc. was selected to conduct a strategic assessment for FCERA Assessment tried to understand feasibility of IT modernization Looked at systems, infrastructure, people, budgets, future plans, needs, and data Led to an IT Roadmap document What is it that you did for FCERA? 5

Findings / Recommendations IT costs with County ITSD are low, and service levels are good –One change being recommended: move application servers in future to FCERA as dedicated servers –Create one additional full-time IT staff position at FCERA Many processes in operations are manual. More automation is both possible and recommended. Replacement systems are recommended. Member files need to be imaged. What are some of the key things you would recommend to FCERA? 6

Key Initiatives An initiative is basically like a project. It is focused on a large scale objective. The initiatives were split into two categories: –Primary initiatives –Secondary initiatives The only difference is a difference in relative criticality and scale. However, all are being recommended. Other initiatives were considered but have been removed from recommendation for this report. What initiatives are you recommending based on your assessment? 7

Key Initiatives Primary Initiatives: New General Ledger Financial System Replacement Pension Administration System Electronic Document Management System Disaster Recovery / Business Continuity Plan Setup, Hiring and Training of Additional IT Staff Member Secondary Initiatives: Case Management / Workflow Automation Web Self-Service / Member Portal Reporting system / Reporting tools initiative What initiatives are you recommending based on your assessment? 8

Key Initiatives and Timing Overview Assumption is that they would begin in July 2009 Much of the work is centered around the schedule of a new Pension Administration System (PAS) to replace Pensions / Watson-Wyatt Many activities would be running concurrently based on the Pension Administration System schedule Activities span from July 2009 to June 2015 IT consultants will be necessary, or FCERA will run the risk of not being able to complete the initiatives successfully or in this time frame When would these initiatives be implemented? How long will they take? 9

Key Initiatives and Timing When would these initiatives be implemented? How long will they take? 10

Estimated Costs How much will all of this cost? Estimates were produced by phase and quarter and summarized in this table These estimates are all-inclusive for one- time expenses, including: Estimates on software licenses, customization Necessary hardware Implementation services They do not include ongoing costs of maintenance Took account of FCERA’s fiscal year of July 1 to June 30 11

Estimated Costs How much will all of this cost? One-time cost estimates FY (Amounts in thousands of dollars) FY FY FY FY FY FY EST TOTALS PRIMARY INITIATIVES $0 General Ledger $250$0 $250 Pension Administration System $180$1020$1000$1250$400$0$3850 Electronic Document Management System $0$310$800$0 $1110 Disaster Recovery / Business Continuity Plan $60$0 $120$180 IT Staff Hiring (Cost of setting up position) $0 SUBTOTAL, PRIMARY INITIATIVES $490$1330$1800$1250$400$120$5390 SECONDARY INITIATIVES $0 Reporting System / Reporting Tools $0 $32$15$60$0$107 Case Management / Workflow Automation $0 $100$0$60 $220 Web Self-Service / Member Portal $0 $300$0$300 SUBTOTAL, SECONDARY INITIATIVES $0 $13215$420$60$627 TOTALS $490$1330$1932$1265$820$180$