Public Pension Fund International Technical Adviser

Background

The government of Afghanistan has laid out its vision of reforms in the social protection sector in the Afghanistan National Peace & Development Framework (ANPDF). The main objectives of the Pension General Directorate (PGD) are to implement a modern and financially sound pension system, to establish the Public Pension Fund, to work on its fiscal sustainability.

The PGD has made significant progress and achievements in implementing pension reforms. The reforms include the establishment of PMIS (Pension Management Information System), biometric registration of pensioners for proof of life, system roll-out to provinces, and capacity building.

Recently, the PGD has initiated an ambitious reform plan under the umbrella of Fiscal Performance and Improvement Support Project (FSP) to establish the Public Pension Fund. The PGD needs the services of an International Technical Adviser for achieving its reform goals while establishing a Public Pension Fund with appropriate governance and financial management arrangements.

The International Technical Adviser will accomplish the following tasks in Pension General Directorate Kabul, Afghanistan.

Responsibilities

The adviser is expected to provide the following deliverables/outputs. The payments will be based to satisfactory delivery of outputs.

1. Review and finalization of strategic note / concept note on Public Pension Fund (PPF).

The strategic note will include the rationale behind the proposed PPF, its objectives, functions, operational and legal framework, human resources needs, and establishment of a running PPF with its governing board and governance mechanism. The note will have to detail the means of institutional alignment and separation of the finances of the public sector pensions schemes administered with the support of the Public Pension Fund. The strategic note / concept note will pay special attention managing the transition from direct budget financing to a financial mechanism backed by the Public Pension Fund in relation to the existing public sector pension schemes. The note will also discuss challenges and risks and suggest ways and means to address them. 

1. Review of the Pension Board structure and governance mechanism for a fully functioning Public Pension Fund in Afghanistan.

The review needs to specifically address the contribution of each member of the Public Pension Fund governing mechanism in terms of representation of nominating stakeholder group and contributing expertise. The review should also address how the composition of the governing bodies, the Board of the Public Pension Fund, relate to decision-making that is rooted in representing the interest of pension plan members distinctively from the decision-making influence of the executive branch of the government. The review should also address the role of other governing bodies of the Public Pension Fund, in particular, the committees of the Board of the Public Pension Fund.

1. Develop a sound Operation Manual for Public Pension Fund management.

A priority area of the Operations Manual is addressing the operational separation of the Ministry of Finance affiliated Pension General Directorate and the distinct Public Pension Fund institution.

1. Work on Pension Fund Investment policy with special attention towards long-term financial sustainability of the fund.

First, the Public Pension Fund investment policy needs to address how the financial relationship between the government and the Public Pension Fund affects available investment choices especially given the transition from direct budget financing of pension benefits to budget funding of the contributions of public servants. A special topic is addressing the transitionary cash flow implications with the possibility of restricting initial investment in government issued debt instruments that would channel the cash flow back to the budget with explicit recognition of the pension related obligation of the budget to the Public Pension Fund. Second, the investment policy needs to take a principle stance on the risk – return profile of allowable investment instruments for overall prudent and safe management of pension fund assets. Third, the investment policy needs to address the responsibility and accountability for implementing investment transactions in line with the investment policy.

1. Assist in monitoring implementation of plans and to provide consultation-based assistance to the management of the PGD.

• To review and provide his/her feedback on all the pension fund related documents.
• To provide his/her opinions with respect to the further development and expansion of Public Pension Fund.

The adviser has to work closely with the technical team of PGD in terms of monitoring the implementation of pension plan and continuous consultation to support pension policies.

Qualification

 Educational background

• Master’s degree in Economics, Finance, or Management, additional professional certifications in the areas of investment and pension fund management will be preferred.

Experience

• Proven track record of at least ten years of experience in public financial management with a strong preference to specific knowledge on pension fund governance and investment management

Means of work and collaboration

• Capability to work independently and share technical issues with project team through remote communication channels and in the context of frequent visits to Kabul.

Client relation skills

• It is necessary that the adviser shall be able to work cooperatively and inclusively with client representatives.

Remuneration

Remuneration shall be on delivery basis, and shall be in lined with the ITA policy of the Ministry of Finance. The reimbursables are included in the total remuneration.

Duration

The appointment will start immediately upon conclusion of the hiring process. The contract period is four months. The advisory is output based assignment. The contract months are allocated to FY19, the rest are allocated to FY20.

S/he has to provide interim and final reports.

Tentative Delivery Schedule

Note: Each 10 days of activity number 5 start directly after the completion of the activity number 1 and 2, 3, and 4 respectively.

For further information in respect of this REOI can be obtained at the address below by email or in person during office hours (08:00 AM to 03:30 PM).

Submission email addresses:

wahid.salik@mof.gov.af copying hadi.ghaffari@mof.gov.af and hamayoon.qudosi@mof.gov.af

Phone number for contacting: +93 (0) 202924590