Greenlandic pension fund SISA has signed a declaration of intent to move a range of administrative functions for its 41,000 individual pension plans to AkademikerPension, an outsourcing contract that is currently held by AP Pension.

The chief executive officer of the Nuuk-based firm cited AkademikerPension’s new core IT system as an attraction, adding that the two partners aimed to sign an official agreement on the matter by the end of October, with SISA’s members having their pensions administered by AkademikerPension from January 2025.

Schock Petersen, CEO of SISA, said: “We have chosen AkademikerPension because the company, with its new core system, has created an IT system that ensures our members a contemporary, good and digital experience.

SISA said it would continue to manage investments, and would continue to serve and advise its own customers.

The firm said it was switching its outsourcing provider move in order to give customers better service and at a lower cost, and that Akademiker Pension’s new core IT system would achieve this.

Jens Munch Holst, CEO of AkademikerPension, which has 150,000 members, said: “We have just completed a core change, and therefore we can offer SISA a future-proof IT platform, which we can further develop together.”

SISA said AkademikerPension would be responsible for IT operations and development, financial administration services and reporting, among other things.

Asked by IPE to comment on losing the SISA business, Bo Normann Rasmussen, CEO of AP Pension, said that following his firm’s acquisition of Skandia, AP Pension had focused its strategy on its own customers and not on the administration of other pension funds.

“So in connection with the core system change we initiated, it has been natural to enter into a dialogue with SISA about the future,” he said, adding that AP Pension was developing a new, “state-of-the-art” system focusing on simplicity and efficiency in relation to its own business.

“It was not obvious that SISA’s business would fit into our new core, so it suits our strategy well that they have now found a new partner,” the CEO said.

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