A. BACKGROUND

Mongolia has received a credit from the International Development Association (IDA) under the Strengthening Fiscal and Financial Stability Project (SFFSP). The Objective of the SFFS Project is to improve fiscal policy and sustainability in a mineral-based economy, protect the poor and vulnerable, and restore confidence in the financial sector. The project is designed into five components: (I) Strengthening Macroeconomic and Fiscal Management; (II) Improving the Efficiency of Public Financial Management; (III) Enhancing Financial Sector Stability; (IV) Strengthening the Social Protection System; (V) Project Management and Monitoring. The objectives are to: Strengthening fiscal responsibility and implementing relevant policy measures, improving fiscal discipline, strengthening the resiliency of the banking system, improving public expenditure quality in social protection, providing support for Project implementation, coordination, monitoring and evaluation, including, inter alia, audit arrangements, reporting requirements, procurement and financial management activities respectively. For more details, please refer to the Project Appraisal Document Report No. PAD2269.

Mongolia has a well established social insurance system with an extensive set of pensions, and benefits, including old age; disability; survivorship; maternity; accident and short-term disability; health and unemployment insurance. All of its social insurance programs are contributory for employers and workers and are financed on a pay-as-you-go basis.

The Social Insurance Fund (SIF) is composed of 4 funds (sub-funds) as follows:

         - The Pension Insurance Fund (PIF);

         - Short term social insurance benefit fund; 

         - Work place injury and occupational disease insurance Fund; and 

         - Unemployment insurance fund.

The four funds are managed by the Social Insurance General Office (SIGO). Contributions are mandatory for all workers with labor contracts which is about 60% of the labor force. The schemes cover workers in both the public and private sectors. A voluntary scheme is also contributory. Collections, monitoring and enforcement are all done by SIGO. There is no linkage between corporate and personal income tax collections on the one-hand and social insurance collections on the other.

MLSP and SIGO wish to seek experienced international and local consultants to evaluate the legal and incentive framework for contribution remittance and arrears clearance and propose legal and institutional reforms to strengthen contribution collections, including options for unifying contributions and income tax collections, monitoring and enforcement.

B. OBJECTIVE OF THE ASSIGNMENT

The objective of the assignment is to strengthen the policies and processes for contribution collections, monitoring and enforcement, contribution arrears clearance and exploration of options for unifying social insurance and tax collections and enforcement.

C. SCOPE OF THE WORK

The consultants will carry out the following activities:

Social Insurance contribution collections, monitoring, enforcement and arrears clearance requirements and processes.

• -Review the existing rules and procedures for contributions collections, penalties for arrears, and arrears clearance processes.
• -Review the data on contribution collections and arrears over the past 5 years.
• -Review the linkages between contributions collections and the accrual of social insurance benefits (non-accrual of benefits when contributions are not remitted or partially remitted).
• -Review the processes for collections monitoring and compliance enforcement.
• -Prepare a plan for strengthening collections, monitoring, compliance enforcement, and arrears clearance by SIGO.
• -Hold policy discussions with policy makers in the Ministry of Finance, General Department of Taxation, MLSP and SIGO about the  plan for strengthening collections, monitoring, compliance enforcement, and arrears clearance by SIGO.

To do research for unifying social insurance and tax collections.

• -Review the corporate and personal income tax collections and tax filing requirements.
• -Review the data management equipment and processes for tax purposes.
• -Prepare an assessments of the pros and cons of unifying collections, monitoring and enforcement in the General Department of Taxation. The assessment should also review the staffing and data systems requirements for such a unification.

Summary assessment of key challenges and recommendations. 

-Summarize the key challenges and proposed recommendations. Prepare proposals for amendments to relevant laws and regulations. Prepare a roadmap for        addressing the key recommendations, including further analysis needed

D. DELIVERABLES

All deliverables should be discussed with relevant officials of MLSP, SIGO and other entities such as the Ministry of Finance and the General Department of Taxation with incorporation of comments in order to ensure quality.  The international consultant will deliver the following outputs:

1. Inception report outlining the assignment, providing a work plan, specifying critical data and other information requirements, and preparing a draft annotated outline of the Consultants’ report.
2. PPTs for Client Workshop – The PPTs should summarize the key challenges and recommendations indicated in the draft report.
3. Draft Report – The draft report should generally follow the outline in the inception report. The report should include an executive summary no longer than 3 pages with a prioritization of key recommendations. Detailed recommendations for legal reforms, draft guidelines, and operational process reforms should be included as annexes to the report.
4. Final evaluation report integrating the analysis above and addressing the comments of key counterparts and including the proposals for amendments to relevant laws and regulations and a roadmap for addressing the key recommendations, including further analysis needed.

The following is the estimated timing of tasks and deliverable:

E. CONSULTANT’S QUALIFICATIONS/ SELECTION CRITERIA

This assignment will require a lead international consultant with the qualifications indicated below.

The lead consultant will be responsible for overseeing the analysis, production of the report, communications with the counterpart and presentation of the findings.

Education: Suitable candidate should have MA in economics, finance or an MBA.

Experience: Consultant should have at least 10 years relevant professional experience with public pensions, social insurance and income tax collections, monitoring and enforcement. Additional experience with accounting and financial control systems would be a plus.

Language skills: Excellent oral and written skills in English.

D. SUPERVISION AND REPORTING

The consultant will report to Head of a Technical working group, who is the Director of Policy, Planning Department (PPD).  The consultant will work on a day-to-day basis under the guidance of the Lead consultant and Director of PPD on technical matters related to the assignment. Work progress will be presented during the working group meeting or other meetings as needed.  

The Director of PPD shall evaluate the performance on agreed deliverables and approve the invoices for the delivered outputs.  

The consultant will prepare a 3-5 pages summary progress report detailing the achievements and impediments in executing the entire assignment effectively.  The MLSP and SFFS PIU will provide input to the evaluation of the consultant’s performance.

E. CONTRACT DURATION

Expected commencement date of the contract is August, 2020 and duration is approximately 14 weeks.

F. INSTITUTIONAL ARRANGEMENTS

The consultants will have access to all necessary data and information and free access to the staff of the MLSP, SIGO and the FRC. 

Based on the evolving needs of the Client (MLSP) and performance of the consultant, the contract may be extended if needed. If any task is not finished and approved by the Client within the agreed-upon timeline, the consultant should complete the task/s without any additional cost.

Payments will be released upon satisfactory completion of all deliverables due for each task, according to the following schedule:

• Submission of Deliverable 1 and 2 stated in the ToR conditional on the Client’s approval: 50 % of the total contract amount;
• Submission of Deliverable 3 and 4 stated in the ToR conditional on the Client’s approval: 50 % of the total contract amount. 

The consultancy service shall be provided remotely, due to COVID-19 related international ban.

If you possess the above qualifications, please submit following documents via email to procurement@sffs.mn:

    1. Cover letter indicating why she/he considers her/himself suitable for the position.

    2. Detailed CV highlighting relevant skills/experience.

    3. Copy of diplomas or certificates; and,

    4. 2 reference letters from previous last two employers no later than 17:00, August 14, 2020.

The submitted documents will not be returned to the applicants. Please note that incomplete applications would not be considered for evaluation. Only selected candidates will be contacted. Candidates can be interviewed. Detailed terms of reference can be requested from procurement@sffs.mn.  Attn: Ms. Bayarmaa #205, 8/2 Building, UN Street, Chingeltei district, Ulaanbaatar 15160, Mongolia, Tel: 70120582, 

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