SharePoint Central Administration App Pool Settings - Access denied. at Microsoft.SharePoint.Administration.SPPersistedObject.Update()

Creating Site using Collaboration or Portal Template encounters this error. This could also be linked with Record Centre Template:

Access denied.   at Microsoft.SharePoint.Administration.SPPersistedObject.Update() 

   at Microsoft.SharePoint.Administration.SPJobDefinition.Update() 

   at Microsoft.SharePoint.Administration.SPWorkItemJobDefinition.Update() 

   at Microsoft.SharePoint.Publishing.Internal.RootProvisioner.<>c__DisplayClass5.b__4() 

   at Microsoft.SharePoint.SPSecurity.CodeToRunElevatedWrapper(Object state) 

   at Microsoft.SharePoint.SPSecurity.<>c__DisplayClass4.b__2() 

   at Microsoft.SharePoint.Utilities.SecurityContext.RunAsProcess(CodeToRunElevated secureCode) 

   at Microsoft.SharePoint.SPSecurity.RunWithElevatedPrivileges(WaitCallback secureCode, Object param) 

   at Microsoft.SharePoint.SPSecurity.RunWithElevatedPrivileges(CodeToRunElevated secureCode) 

   at Microsoft.SharePoint.Publishing.Internal.RootProvisioner.AddSchedulingJobDefinitions(SPSite site) 

Resolution:

Make sure the central administration's application pool identity set to domain service account. It will not work under network services account.