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Tenders are invited for Making The Case for an Old-Age Social Pension in Federal Iraq Closing Date: 17 Oct 2024 Type: Consultancy Themes: Coordination/Protection and Human Rights BACKGROUND: PENSION SYSTEM IN FEDERAL IRAQ The pension system in the Federal Iraq is a mosaic of fragmented schemes shaped by the countrys complex political history. A contributory pension scheme serving public sector employees is characterized by high coverage and relatively generous rules and benefits. This includes public sector workers who retired before 2006 and their survivors, whose pensions are funded from the government budget. Alongside this, there is a contributory pension scheme for private sector workers, recently reformed through legislative changes introduced by the Law on Pension and Social Security for Private Sector Workers No 18 of 2023, supported by the ILO. In spite of its strong alignment with the ILO Social Security (Minimum Standards) Convention, 1952 (No. 102), ratified by Iraq in March 2023, its coverage is rather low, and benefits are less generous compared to the public sector. The private sector pension scheme has been estimated to cover about 350,000 workers in 2024. A third component of the pension system includes budget-financed schemes for beneficiaries of the contributory system before 2006, as well as non-contributory benefits for families of martyrs and victims of terrorism and political persecution. Despite what appears to be an extensive coverage, the majority of the elderly population does not receive individual pensions. Instead, they rely on social assistance from the Social Safety Net (SSN), a household-based poverty targeted programme, personal savings, intra-household financing, and/or other informal support mechanisms. The SSN programme provides support to households living below the poverty line who are not covered by the contributory pension system, including elderly individuals. Approximately 225,000 older persons benefit from such cash transfers. RATIONALE The Ministry of Labour and Social Affairs (MoLSA) is currently designing a Social Protection Sector Strategy for 2025-2030. The strategy adopts a right-based approach to social protection, by focusing on increasing access to social protection benefits and services, both contributory and tax-based, and better tailoring them to the needs of vulnerable groups of Iraqis, including older persons. The ILO, together with UNICEF and WFP, are implementing an EU-funded Joint Social Protection Programme to provide technical support to MoLSA for the implementation of a right-based approach to social protection and the progressive establishment of a social protection floor in Iraq. As part of the support planned under the Joint Programme, the ILO seeks to initiate a policy dialogue on establishing a social pension for older persons (sometimes called a zero-pillar Pension) through a policy paper. The policy paper is expected to kick off the initial policy discussions and stakeholder consultations on a feasibility of establishing social protection in old age in Iraq. It would seek to make the case on why it is critical to introduce a social pension for older persons in Iraq based on a right-based approach to social protection, including by formulating policy rationale in the context of Iraqs socio-economic and demographic developments as well as social protection policy landscape. The paper will also elaborate possible design options and coverage scenarios, and, to the extent possible, advise on cost implications and give considerations for implementation and operation of the scheme. The paper is also expected to provide examples of zero-pillar Pension schemes implemented in countries with similar socio-economic conditions, including of their design, coverage, administration and financing. Finally, it will also position old-age social pension within the broader right-based social protection agenda for Iraq and progressive establishment of social protection floor, as well as along other existing social assistance schemes, particularly SSN and Public Distribution System (PDS). PURPOSE AND OBJECTIVES This activity seeks to facilitate policy dialogue on the establishment of basic, non-contributory pension scheme provided by the government to ensure a minimum level of income for elderly persons, regardless of their work history or contributions to any social security system, otherwise referred to as a zero pillar. Such a system could be universal, pension-tested, affluence tested or other/mixed. The paper will contribute to a broader policy dialogue on a right-based approach to social protection under the ongoing technical cooperation framework of the Joint Social Protection Programme. More specifically, the paper will: Make the case for establishing a social pension for older persons in Iraq by formulating policy rationale. The paper is expected to position such a pension in the context of ongoing right-based social protection reforms and vis-à-vis other existing social assistance schemes, particularly SSN and PDS, to argue for the progressive establishment of a social protection floor in line with ILO Convention 102 and Recommendation 202. Explore the initial options to design and implement the zero-pillar social pension for elderly persons in Federal Iraq. Expand the existing knowledge on possible policy options to design a zero-pillar noncontributory pension in Iraq, including by exploring different scenarios for coverage, associated cost implications, financing options, and considerations on administration and governance. Identify key stakeholders in Federal Iraq with the potential to support and lead policy debate on introducing and positioning old-age social pension within the social protection system in Federal Iraq. EXISTING KNOWLEDGE To initiate policy discussions on establishing social pension for old-age persons in Iraq, the ILO, jointly with other UN agencies, both within the EU-funded Joint Social Protection Programme and beyond its scope, has started generating knowledge on making the case for social pension as for the tool for a right-based approach to social protection and extension of coverage. In August 2022, in partnership with other UN agencies including UNICEF, WFP and UNHCR, the ILO published the Position Paper: Building Iraqs Social Protection Floor Framework and Recommendations. The working paper offers a set of strategies and options regarding the non-contributory social assistance programmes into a coherent, effective, and impactful system that contributes to the vision of Iraq as a socially inclusive and economically productive nation. In February 2024, jointly with the International Monetary Fund and the World Bank, the ILO published the policy note Towards an Inclusive, Equitable and Sustainable National Pension System in Iraq. The paper emphasizes the need for comprehensive pension reforms in Iraq that enhance equity, adequacy, and sustainability of the contributory system, while extending protection to those who remain excluded through tax-financed social pension, especially women. In 2024, jointly with ILO and WFP, UNICEF commissioned the public expenditure review (PER) and fiscal space analyses (FSA) to understand affordability of social protection floor in Iraq and inform progressive implementation of a lifecycle approach. SCOPE OF ASIGNMENT Under the technical supervision of the Chief Technical Advisor on Social Security, the Technical Officer on Social Protection and the National Project Officer based in ILO-Iraq, with overall guidance of the Senior Social Protection Specialist of the ILO Decent Work Team of the ILO Regional Office for the Arab States, the External Collaborator will carry out the following activities: Identification of vulnerabilities, protection risks and coping mechanisms of the older people in Iraq within the current socio-economic and demographic context and analyses of existing social protection programmes (contributary and non-contributary), including public and private sector old-age pensions, SSN and PDS, to understand social protection coverage and the extent and magnitude of exclusion of older persons from the current social protection system. Positioning of old-age pension withing the current social protection, socio-economic and demographic landscape in Federal Iraq, with a right-based approach in mind and a view to progressive establishment of social protection floor, and formulation of policy rationale (case) for establishing social pension in Federal Iraq. Mapping zero-pillar Pension schemes implemented in the countries with similar socio-economic and demographic conditions, and analyse their design, coverage, administration, governance and financing to identify elements of potential interest and applicability to the context of Iraq. Exploring various options to design a zero-pillar non-contributory social pension, their coverage scenarios and possible financial implications. This work should discuss at least three (3) scenarios with varying levels of ambition, including the one that conforms with a universal social protection (USP) approach or the social protection floor at the least. It should also draw upon the initial options and costing proposed in the IMF-ILO-WB policy note Towards an Inclusive, Equitable and Sustainable National Pension System in Iraq, and provide country examples from developing and emerging economies whereby social pensions have been introduced while facing policy, legal, fiscal or institutional constraints. The paper should also give initial considerations for operational design, including on possible the institutional set up, administration and governance models. This work should take note of innovative international experiences and practices, including those adopted as part of COVID-19 relief efforts. Identifying key Tender Link : https://reliefweb.int/job/4097672/making-case-old-age-social-pension-federal-iraq
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