TA-6938 PAK: Preparing the Improved Domestic Resource Mobilization Reform Program - Nat'l Consulting Firm - Actuarial Analysis of the Federal Government's Defined Benefit Pension Scheme For Civil Servants (56006-002)

TA-6938 PAK: Preparing the Improved Domestic Resource Mobilization Reform Program - Nat'l Consulting Firm - Actuarial Analysis of the Federal Government's Defined Benefit Pension Scheme For Civil Servants (56006-002)

Date Published: 12-Jul-2025

Deadline of Submitting EOI: 04-Aug-2025 04:00 PM Manila local time

SELECTION PROFILE

Consultant Type: Firm

Selection Method: Simplified Consultants' Qualifications Selection (SCQS)

Selection Title: Preparing the Improved Domestic Resource Mobilization Reform Program

Package Name: Nat'l Consulting Firm - Actuarial Analysis of the Federal Government's Defined Benefit Pension Scheme For Civil Servants

Engagement Period: 4MONTH

Consulting Services Budget: USD 100,000

Source: National

Technical Proposal: Single-Stage Proposal (SSP)

Approval Number: 6938

Approval Date: 04-Aug-2022

ADDITIONAL INFORMATION

Country of assignment: Pakistan

Country of eligibility for national consultants: Same as country of assignment

TERMS OF REFERENCE

Primary Expertise: Actuarial Analysis and Evaluation of Pension Liabilities

TOR Keywords: Actuarial Analysis, Pension Liabilities,

Objective and Purpose of the Assignment

Actuarial Analysis of the Federal Government's Defined Benefit Pension Scheme For Civil Servants

BACKGROUND & RATIONALE The Government of Pakistan is committed to ensuring the long-term sustainability of its pension system. The Defined Benefit (DB) Pension Scheme for Civil Servants and Armed Forces personnel, which predates the introduction of the Defined Contribution (DC) Pension Scheme in July 2024, has become a growing fiscal challenge due to rising pension costs and increased life expectancy. The last actuarial study of the DB Scheme was conducted as of June 2021. With the shift to a DC Pension Scheme for new Civil Servants w.e.f. July 1, 2024, the Government needs to assess the financial implications of this transition, compare the cost trajectories of the DB and DC schemes, and evaluate potential fiscal savings. Additionally, parametric reforms implemented to the DB Pension Scheme in FY 2024-25 also require actuarial evaluation to measure their impact on reducing pension liability and achieving cash flow savings. A data-driven approach will also be crucial to exploring additional reforms, if needed, that ensure fiscal sustainability while maintaining actuarial fairness. This actuarial study will provide essential insights to guide evidence-based policy decisions.KEY OBJECTIVES OF THE ACTUARIAL STUDY The actuarial study will provide the Ministry of Finance with a detailed assessment of the DB Pension Scheme for Civil Servants, including Civil Armed Forces such as the Frontier Corps, Pakistan Rangers, and Frontier Constabulary, focusing on: • A comprehensive actuarial valuation and analysis of pension liabilities, covering both retired Civil Servants and those still in service, with projected fiscal implications. • Key drivers of pension liability growth and their influence on future obligations. • Long-term cash flow projections to help the Government manage pension-related cash outflows and ensure commitments remain manageable and predictable. • Data-driven insights to support evidence-based policymaking for additional pension reforms, if needed. Additionally, the study will serve as a strategic tool for fiscal planning and policy formulation, presenting sensitivity and scenario analyses to evaluate how changing economic conditions, life expectancy, and retirement age impact pension costs.