AUSTRALIA - CitiStreet Australia, the superannuation fund administrator, and Watson Wyatt Australia have signed a long-term mutual outsourcing agreement.
Under the agreement, CitiStreet will provide high quality, state-of-the-art administration services to Watson Wyatt clients and in return, Watson Wyatt will provide compliance and research consulting services, as well as actuarial and other consulting services for its administration clients.
Watson Wyatt will also transfer its administration operation and staff to CitiStreet, and will engage CitiStreet to provide services to existing and future clients requiring administration services.
All client responsibility will remain with Watson Wyatt, which will continue to manage client relationships.
Brad Jeffrey, director of Watson Wyatt in Australia said: “Administration businesses require a regular and significant investment in technology in order to provide the systems and processes required to meet our clients' increasingly complex needs.
“This deal allows Watson Wyatt clients to take advantage of the global technology and defined contribution (accumulation) expertise offered by CitiStreet, which complements our extensive defined benefits experience and expertise.
The agreement also allows Watson Wyatt to focus on its consulting practices, which include actuarial and employee benefits, investment consulting, employee communication, human capital strategies and related technology solutions.
Services to be provided by CitiStreet will include superannuation fund administration, share plan administration and salary continuance plan administration. Over time, further value-added services will be added, including sophisticated employer Web functionality and enhanced call center facilities with voice recognition - a first for the Australian superannuation administration market.
Gary Cox, managing director of CitiStreet Australia added: We see significant opportunity for CitiStreet in the Australian market. As a global organization, our systems and services provide the flexibility and depth of resources which will become even more vital to compete effectively in a choice-of-fund environment.”
A joint venture between Citigroup and State Street - two of the world's largest financial services companies - CitiStreet is one of the world's leading providers of administration services to retirement plans. In Australia, CitiStreet provides comprehensive superannuation fund administration services to large and complex funds.
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