Legacy Technology: Houston, We Might Not Have a Problem

This is the second article in our series on superannuation’s underdeveloped operational infrastructure. Missed the first one? Get up to speed here. 

When Space Shuttle Atlantis made its final voyage in 2011, it did so relying on core IT systems developed in the early 1970s. The Primary Avionics Software System (PASS) performed most of the functions required to fly the shuttle for 30 years. And despite undergoing continuous improvement for reliability, functionality and safety, its fundamental architecture remained essentially unchanged. After 135 launches, including two disasters, the software engineers responsible for PASS could nonetheless sleep easy in the knowledge that it never contributed to loss of mission, crew or vehicle. 

Superannuation is not space exploration, and a superannuation fund is not a space shuttle — no matter how other worldly some of our colleagues might seem. Yet core IT systems are integral to the day-to-day operations of the modern superannuation fund, and any issues or failures in these systems can have far-reaching consequences for funds and their members.

In this article, we give a brief overview of the notion of legacy technology and how it relates to core IT systems in superannuation, noting that a systematic exposition of the topic requires more than a single blog post. 

A mixed legacy 

The term “legacy technology” refers to software, hardware, systems, or applications that are: 

• • Old, and have been developed using outdated and superseded technologies.
  • Still in use, often in a mission critical capacity. 
  • Often lacking the features, interoperability and architectural flexibility expected of more modern systems.

Registry systems — responsible for recording and managing member accounts, processing contributions, and managing benefit payments — often meet this definition of legacy technology within superannuation. Many funds use systems that are over 20 years old, and we have no doubt that our more time-worn readers will let us know that many are far older than that (or would’ve before we called them time-worn). 

The software that brought the astronauts of the Atlantis safely back to earth in 2011 was undoubtedly legacy technology, but both NASA and superannuation funds have had valid reasons for sticking with old solutions. Legacy systems, like PASS, might work well, and replacing the system might be complex, expensive and risky. Newer alternatives may offer modern bells and whistles but fail to deliver on the basics. As inventor of the C++ programming language, Bjarne Stroustrup, once said: “Legacy code often differs from its suggested alternative by actually working and scaling.” Likewise, there have been many attempts to build new registry systems using the latest and greatest technology at the time. Many of these ultimately failed. There is a reason decades old systems are still very common today — they work. 

Nonetheless, legacy systems cause issues for superannuation funds and their members. Many cannot provide the kinds of experiences and user interfaces that fund employees and members expect in 2025. The common response to this is wrap a legacy system in a modern mobile or web-based interface, but this in itself is challenging as these applications were not designed to expose data and programmatic functionality to an external interface. Cost of change can become an issue as expertise in an outmoded technology becomes harder to find, or simply because the system is being adapted to perform functions that it is not suited to. Scalability is a difficult thing to achieve when dealing with a system running on a mainframe in an era where our default approach to scalability is cloud-based. 

How should we approach legacy technology? 

How then should the superannuation industry approach legacy technology? Our experience working with legacy solutions in this sector has taught us that: 

Legacy technology can be an asset rather than a liability. 

NASA’s 2013 MAVEN mission saw an unmanned spacecraft sent to Mars in schedule and within budget. The MAVEN team in part credited this success to “the use of heritage [i.e. legacy], flight-qualified hardware and software flown on eight previous interplanetary missions, thereby avoiding the cost and schedule challenges often associated with developing new technologies.” In a similar way, leveraging a registry system that has a track record of being able to administer complex defined benefit schemes presents superannuation funds many advantages over trying to accomplish this with a more modern but unproven alternative. 

The role of legacy technology must be clearly and thoughtfully defined. 

Contrasting the success of MAVEN was the 1993 failure of the Mars Observer mission, in which a leaking check valve resulted in all communications with the spacecraft being lost — a US$800m whoopsie. Investigators concluded that “too much reliance was placed on the heritage of spacecraft hardware, software, and procedures, especially since the Mars Observer mission was fundamentally different from the missions of the satellites from which the heritage was derived.” As with MAVEN, legacy technologies had been relied on, but in this case, they had been heavily modified to carry out functions for which they were not designed. We have seen instances of this in superannuation, with core registry systems modified to carry out functions like insurance policy administration. While legacy technology can be an asset when used for the purposes it was originally designed, they can become a liability when expanded haphazardly to functions outside this remit. Discipline must be taken in defining the role of a legacy technology in a broader technology ecosystem, and resisting the urge to deviate from this. 

Investment in considered continuous improvement is crucial. 

Over its lifetime, the software development team working on PASS evolved a software process focused on continuous improvement and defect elimination. This undoubtedly contributed to the low error rate and perfect safety record of the system. The economic imperatives in superannuation are of course markedly different from those that characterised the space race. Nevertheless, investment in continuous improvement to increase performance, stability and usability is crucial — especially in light of increased regulatory focus on service levels in the sector. 

Training and robust knowledge management is essential. 

One of the realities of legacy technology is the difficulty finding talent with the skills to work on it. As experienced developers retire or move on, and fewer new entrants learn older languages or architectures, the pool of knowledgeable professionals continues to shrink. At Novigi, we run training “academy” programs, for experienced developers to systematically share their knowledge and skills. Knowledge management practices — such as detailed documentation and onboarding programs — are also essential. The organisation and cataloguing of knowledge should be informed by a thorough understanding of the technology, ensuring that staff can find what they need when they need it. 

Everything old is new again 

The superannuation system is unlikely to dispense with legacy technology anytime soon, and we argue that there are reasons it shouldn’t want to. The future of the industry will invariably involve artificial intelligence, and any number of exciting technologies we are yet to even dream of. And yet, superannuation, like space travel, would be well served by judiciously leveraging the technologies of the past in conjunction with the new. If we can do that, that would surely see us creating a legacy worth protecting. 

Legacy Technology: Houston, We Might Not Have a Problem is part of The Quarterly – Q4 FY25

Key Contributor:

This article was also strengthened by a wider group of Novigi specialists, whose withering years of toil and rich experience added depth and clarity to the perspectives shared.

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