Office of Program Policy Analysis and Government Accountability
Office of Program Policy Analysis and Government Accountability

Outsourcing Pension Plan's Outreach Services Would Not Be Cost-Effective

Report 03-61, November 2003




Report Summary

  • The Florida Legislature directed OPPAGA to examine the potential benefit and cost-effectiveness of outsourcing specific participant outreach functions currently performed by the Division of Retirement for the Florida Retirement System Pension (FRS) Plan. Among other activities, the division performs participant outreach by answering telephone calls and conducting educational seminars. These services have been outsourced for the FRS Investment Plan, which is administered by the State Board of Administration.
  • Outsourcing these specific Pension Plan outreach services would not be cost-effective. The state would not be able to take full advantage of a private company's service potential and infrastructure across various types of functions, and it would not produce substantial reductions of division costs.
  • However, a broader approach to outsourcing the full range of division activities may be feasible and should be explored. The division should also expand its call hours and enhance its ability to track statistical information on call operations.


Related Reports
  1. Program Review: Florida Retirement System Pension Plan Fully Funded and Valuation Met Standard
    Report 08-30 April 2008
  2. Florida Retirement System Pension Plan Fully Funded and Valuation Met Standard
    Report 07-24 April 2007
  3. Progress Report: Division of Retirement Exploring Feasibility of Sharing Call Center Software; Center Hours Not Expanded
    Report 05-36 May 2005
  4. Program Review of the Florida Retirement System Pension Plan Fully Funded and Valuation Met Standards
    Report 04-13 February 2004
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
government, government support, retirement, pension plans, outsourcing, privatization, contracting, financial planning, retirement planning, pension plan, state board of administration, PEORP, call centers, seminars, private sector, vendors, privatization, defined benefit