Sutton Pension Fund to upgrade its administration software with significant efficiency gains
The Sutton Pension Fund, serving both Sutton and Kingston councils, is set to receive a significant upgrade to its administration software with the approval of a new contract for the Heywood Altair system. This investment is expected to deliver substantial efficiencies and savings, projected at up to £480,000 per annum, amounting to approximately £4.8 million over the 10-year contract life.
The decision, made by the Strategy and Resources Committee, aims to replace the current outdated Civica UPM system, which has been in place since 2016. The existing system requires staff to use a separate virtual desktop and experiences downtime during software updates, impacting efficiency. The new Heywood Altair solution operates directly through web browsers, offering guaranteed zero daytime downtime and meeting accessibility guidelines.
Beyond web browser access and zero daytime downtime, Heywood Altair offers several superior features. It provides enhanced integration with the national Pensions Dashboard and the Local Government Association (LGA) National Insurance Database to prevent duplicate payments. The system also features enhanced automated processing tools, reducing reliance on manual tasks. Furthermore, it is fully compliant with Web Content Accessibility Guidelines (WCAG) 2.1 AA, including features like Dark Mode and adjustable text sizes, benefiting users with visual impairments and neurodivergent individuals. Heywood Altair is described as a market leader with features already integrated into its core product, providing assurance of its capabilities.
The contract, valued at £4.21 million over 10 years, will be split equally between Sutton and Kingston councils. Softcat PLC has been selected as the provider for the Heywood Altair software. The total contract spend includes initial capital setup costs and ongoing software licensing. Sutton's 50% share of this total outlay is £2,105,000. Initial implementation costs in year 1 are estimated at approximately £320,000, which are expected to be recovered through reduced operating costs, cessation of existing third-party software arrangements, reduced IT infrastructure costs, and process efficiencies. The annual fees over the 10-year period are projected to be cost-neutral to the Pension Fund, with estimated annual savings of up to £480,000 achievable from 2028/29 onwards.
This investment is crucial for managing the pension funds of approximately 39,000 members across both boroughs. The new system is expected to improve the accuracy of benefit calculations, statutory reporting, and employer data returns. It will also enhance the self-service digital portal available to scheme members, offering improved accessibility and allowing them to view all their pension pots securely in one place.
The implementation of the new Heywood Altair system is targeted for September 1, 2027, on a 'very tight time scale'. Potential disruption risks during the transition period are mitigated by using call-off contracts, considered a more cost-effective and faster approach than a full open procurement. The system's guarantee of planned overnight and weekend software deployments with zero daytime downtime is intended to protect core business hours and minimise disruption.
The new system is expected to significantly reduce the reliance on manual processes and data tasks for staff, leading to reduced staffing costs as the focus shifts towards customer support and strategic fund administration. While initial implementation will require extensive staff training, the long-term expectation is that enhanced functionality and automation will streamline operations, allowing staff to concentrate on higher-value tasks.
Public reports pack 05th-Oct-2026 19.00 Strategy and Resources Committee