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 assist the international consultant 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 assist the international consultant to carry out the following activities: The national consultant should assist and provide all necessary documents (Mongolian documents must be translated into English and all reports and related documents from foreign consultants must be translated into Mongolian) and participate in all tasks related to developing relevant reports of international consultants.

    (i) 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. 

   (ii) 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 assessment 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. 

  (iii) 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.

   (iv) In addition to the above work the national consultants would carry out the following activities  and if necessary should be prepared in English and Mongolian: 

        a. compilation and analysis of relevant laws, guidelines, and relevant policies and procedures pertaining to social insurance contributions collections, monitoring, enforcement, and arrears clearance;

        b. compilation of multi-year data on contributions collections, aging of arrears, and arrears clearance;

        c. analysis of corporate and personal income tax collections procedures, monitoring and enforcement and tax arrears clearance; 

        d. compilation and analysis of relevant laws, guidelines, and General Department of Taxation policies and procedures pertaining to tax collections, monitoring and enforcement;

        e. collecting and analyzing other additional data as required by the international consultant; 

        f. contributing to the analysis in the overall report; 

        g.  overseeing the translation of the report to ensure that it is consistent with the authors’ intentions.

D. DELIVERABLE

All deliverable 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 Consultant will prepare the following reports and drafts, and other relevant information, research, reports, and drafts may be added in the course of the work. 

The national consultant will deliver the following outputs in English and Mongolian: 

       Deliverable 1. Within the first week of the assignment, the consultant will prepare an inception report outlining the assignment work plan, specifying critical data and other information requirements and preparing a draft annotated outline of the Consultants’ report and to get it approved by the supervising DG at MLSP.

       Deliverable 2. The compilation and the analysis of relevant laws, guidelines, and SIGO policies and procedures pertaining to social insurance contributions collections, monitoring, enforcement, and arrears clearance and compilation of multi-year data on contributions collections, aging of arrears, and arrears clearance;

       Deliverable 3. The analysis of corporate and personal income tax collections procedures, monitoring and enforcement, and tax arrears clearance and compilation and analysis of relevant laws, guidelines, and General Department of Taxation policies and procedures pertaining to tax collections, monitoring, and enforcement;

       Deliverable 4. PPTs for Client Workshop – The PPTs should summarize the key challenges and recommendations indicated in the draft report.

       Deliverable 5. 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 prioritization of key recommendations. Detailed recommendations for legal reforms, draft guidelines, and operational process reforms should be included as annexes to the report.

       Deliverable 6. 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.

E. CONSULTANT’S QUALIFICATIONS/ SELECTION CRITERIA 

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

       Education: Suitable candidate should have at least master’s degree in economics, finance or related field

       Experience: Consultant should have at least 5 years relevant professional experience with social insurance and tax administration, accounting, financial control, financial institution supervision, and have a familiarity with Mongolia’s pensions and social insurance systems.

       Language skills: Excellent oral and written skills in Mongolian and English.

D. SUPERVISION AND REPORTING

The consultant will report to the Director General (DG),  Policy, Planning Department (PPD).  The consultant will work on under the overall guidance of the international consultant (to be hired by MLSP) and the DG, PPD on technical matters related to the assignment. Work progress will be presented during the working group meeting or other meetings as needed.   

The DG,  PPD shall evaluate the performance on the agreed deliverables and approve the invoices for payments for the deliverables.    

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 in September, 2020. The contract will have a duration of 3 months through to December 2020.

Based on the evolving needs of the Client and satisfactory 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 deliverable 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: 20 % of the total contract amount 

    • Submission of Deliverable 3  and 4 stated in the ToR conditional on the Client’s approval: 40 % of the total contract amount 

    • Submission of Deliverable 5 and 6 stated in the ToR conditional on the Client’s approval: 40 % of the total contract amount 

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.  

Given the COVID-19 related travel restrictions, it is likely that the NC will need to be working independently with some remote guidance from an international consultant (IC), supporting the  work of the IC  remotely with regular communications via emails and existing audio/video facilities and facilitate such virtual interaction between the IC and MLSP, SIGO and other stakeholders as needed.  

Consultant will be selected in accordance with the Individual Consultant Selection Method set out in the Procurement Regulations: The following is the link to the World Bank’s website: https://policies.worldbank.org/sites/ppf3/PPFDocuments/Forms/DispPage.aspx?docid=083b3f94-a932-4395-a410-834f8bc14f8c

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, September 21, 2020.

The submitted documents will not be returned to the applicants. Please be noted that incomplete applications would not be considered for evaluation. Only selected candidate will be contacted.

Address for submission of Expression of Interest: Attention to Ms.Bayarmaa L, Procurement Specialist, Strengthening Fiscal and Financial Stability Project, Address: Room #204, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia. Tel: 70120582 or via email to: procurement@sffs.mn

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