Financial Sector Technical Assistance Project: Feasibility Assessment for the Establishment of Centralized National Pension Database System for Registration of Employers and Employees in the National Pension Scheme

EXPRESSIONS OF INTEREST FOR CONSULTANCY SERVICES TO CONDUCT FEASIBILITY ASSESSMENT FOR ESTABLISHMENT OF A CENTRALIZED NATIONAL PENSION DATABASE (CNPD) SYSTEM FOR REGISTRATION OF EMPLOYERS AND EMPLOYEES IN THE NATIONAL PENSION SCHEME

(Individual Consultant)

Background

The Government of Malawi (GoM) recognizes the vital role that the financial sector plays in the development of the country. While significant progress in the regulatory framework has been made, the formal financial sector in Malawi remains small, concentrated and services a narrow clientele.

A key intervention is the implementation of the five-year Financial Sector Technical Assistance Project (FSTAP), which the GoM is financing with a credit from the International Development Association (IDA) of the World Bank. The project aims at increasing access to finance for the currently unbanked but bankable population of Malawi.  The project's primary end-beneficiaries will be the financially excluded population.

The RBM intends to use part of the proceeds of the credit to make eligible payments for the services of an individual as a technical assistance expert to assess the feasibility of establishing a centralised database system to be used by the Registrar of Financial Institutions (the Registrar) in the registration of employees and employers participating in the national pension scheme as part of enforcing and monitoring compliance with the Pension Act 2010.

The GoM introduced a mandatory national pension scheme in which all employers, except those duly exempted, are required to place employees on pension. Currently, it is estimated that about 200,000 employees from the private sector are members of the national pension scheme with scope to increase as enforcement of the mandatory law expands. The scheme is primarily designed as a defined contribution scheme but defined benefit funds are also permitted. The law provides members with benefit portability rights, giving members the right to choose a pension scheme depending on preference. Employees changing jobs are also expected to move with their pension benefits. However, considering that there is currently no centralized collection or administration system, registration criteria in a pension fund is dependent on the system used by the administrator of the pension fund and as such there is no unique identification for members that are switching between pension funds. The Registrar therefore wishes to explore how to enforce and monitor compliance by employers through the system as well as assist in tracking member movements, trends in benefits payments, unclaimed retirement savings and minimising the existence of multiple accounts - including the possibility of generating unique personal identification numbers to both employers and employees.

1. Objectives

The major objective of the assignment is to carry out a feasibility study for the establishment of a centralized national pension database (CNPD) system. The feasibility study will assist the Reserve Bank of Malawi, as a Registrar to determine a detailed schedule of requirement for possible establishment of a centralized national pension database (CNPD) system, based on the existing infrastructure and any future requirement in Malawi.

1. Scope of the Assignment

The Scope of the assignment shall include analysis of existing approaches, systems, and database being used by employers, services providers, and government agencies. In addition, the scope shall also include; research work into functional and non-functional requirements for the CNPD system. It also expected that if the outcome of the study indicates that it is not feasible to establish CNPD, the report shall provide preferred alternatives to establishment of a CNPD based on the current practices and infrastructure.

1. Tasks
   1. Review and assess the current information and communication technology infrastructure used by the Registrar with a view to ascertain the minimum hardware and software requirements for the proposed CNPD as well as approaches to resolving any integration issues with all stakeholders;
   2. Determine the security needs for the creation, processing, storage and sharing/transmission of data into and out of the proposed CNPD; and
   3. Undertake and deliver a supply market analysis to enhance knowledge by RBM officials in the types of available systems, the key suppliers and their respective business profiles;
2. Deliverables

1. Research into the possibility of establishing a CNPD
2. Research into functional and non-functional requirements for the CNPD:

The consultant shall deliver the following:

1. An interim report, subject to the approval of the RBM, within 30 days of commencement of the consultancy setting out the following:
2. Whether a CNPD is feasible given the current arrangement of the pension system;
3. If so, what changes to the existing administration structures and practice of the pension funds would be required.
4. Recommendations for next steps in the design and pre-procurement study of the system.
   1. A final report, which will incorporate RBM comments on the interim report and the adopted recommendations. This will be no later than 20 days after receipt of comments on the interim report from RBM. The final report will also set out a detailed approach to be considered if it is feasible to establish a CNPD. If it is not feasible, the report must set out preferred alternatives to establishment of a CNPD based on the current practices and infrastructure.
5. Qualification Requirements

The consultant shall meet the following criteria:

1. Master's Degree in Information Technology or related discipline
2. 10 years' experience in designing of centralised database systems.
3. Relevant professional qualification and certification (ITIL, OCP, OCM, MCSE (database) or equivalent) will be an added advantage
4. Experience in database architecture, software and database management systems, and System Analysis and Design, Document Management System (DMS) and applicable data privacy and archiving,
5. Proficiency in the English Language
6. Reporting Requirements

The consultant will be required to report to the Director, PISU.

Duration of the assignment

The duration of the assignment will be for a period of 60 days from the date of contract signature.

Selection of the consultant

The consultant will be selected in accordance with the World Bank's Guidelines: Selection and Employment of Consultants by World Bank Borrowers, of January, 2011 revised in 2014.

Submission of the expression of interest

Interested individual consultants must provide information indicating that they are qualified to perform the services (i.e. qualifications, description of similar assignments, experience in similar conditions etc.).

Interested consultants may obtain further information at the address below during office hours i.e. 0900 to 1700 hours local time.

Expressions of interest must be delivered to the address below by 8^th July 2016.

(Signed by)

Project Manager,

Financial Sector Technical Assistance Project (FSTAP)

Reserve Bank of Malawi,

Convention Drive,

P.O. Box 30063,

Capital City,

Lilongwe 3

TEL:   (265) 1 770 600/771 600

FAX:   (265) 1 773 752