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Office of Program Policy Analysis and Government Accountability

Outsourcing Pension Plan’s Outreach Services Would Not Be Cost-Effective, Report No. 03-61, November 2003
 
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  • 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.

Which Government Program Summaries contain related information?

SBA, Other Investment Functions
State Board of Administration of Florida
Department of Management Services
Retirement Benefits Administration
State Board of Administration, Investment Services for the Florida Retirement System

What other OPPAGA-related materials are available?

  • Report No. 08-30 Florida Retirement System Pension Plan Fully Funded and Valuation Met Standard, published in April 2008.
  • Report No. 07-24 Program Review: Florida Retirement System Pension Plan Fully Funded and Valuation Met Standard, published in April 2007.
  • Report No. 05-36 Progress Report: Division of Retirement Exploring Feasibility of Sharing Call Center Software; Center Hours Not Expanded, published in May 2005.
  • Report No. 04-13 Program Review of the Florida Retirement System Pension Plan Fully Funded and Valuation Met Standards, published in February 2004.
  • Report No. 01-12 Special Review: Feasibility of Outsourcing Florida’s Statewide Retirement Systems, published in February 2001.
  • Report No. 00-01 Progress Report: Retirement Program Addresses Backlog, But It Defers Developing Re-Engineering Indicators, published in August 2000.

Copies of this report in print or alternate accessible format may be obtained by telephone (850/488-0021), by FAX (850/487-9213), in person, or by mail (OPPAGA Report Production, Claude Pepper Building, Room 312, 111 W. Madison St., Tallahassee, FL 32399-1475).
e-mail address: oppaga@oppaga.fl.gov


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