Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives - Pension and Social Protection Administration (P104743) Maldives - Pension and Social Protection Administration (P104743) SOUTH ASIA | Maldives | Social Protection Global Practice | IBRD/IDA | Specific Investment Loan | FY 2009 | Seq No: 11 | ARCHIVED on 04-Mar-2015 | ISR18210 | Implementing Agencies: Maldives Pension Administration Office, Treasury and Public Accounting Department, National Social Protection Agency Key Dates Key Project Dates Board Approval date:12-May-2009 Effectiveness Date:22-Oct-2009 Planned Mid Term Review Date:20-Feb-2013 Actual Mid-Term Review Date:17-Mar-2013 Original Closing Date:31-Dec-2012 Revised Closing Date:30-Jun-2015 Project Development Objectives Project Development Objective (from Project Appraisal Document) Original PDO: is to support the establishment of a new pension authority and strengthening capacity at existing institutions of theRecipient in order to effectively implement a new pension system and to provide a platform for additional social protectionprograms. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)PHRPDODEL Revised PDO: to support the implementation of the National Pension Act, to strengthen institutional capacity of key agencies responsible for implementing the National Pension Act, and to develop the processes and platforms required for the delivery of social protection programs. Components Name TA and Capacity Building for Implementation of New Pension Program:(Cost $3.45 M) Public awareness campaign:(Cost $0.35 M) Public Accounting System:(Cost $2.00 M) Administration of Health Insurance, Disability and Targeted Assistance:(Cost $2.00 M) Pay-out of pension liabilities:(Cost $8.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Unsatisfactory 3/4/2015 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives - Pension and Social Protection Administration (P104743) Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions The overall project implementation has continued to make progress since last September. Under Components A & B, the Maldives Pension Administration Office (MPAO) has stepped up the public information activities for participation of self employed workers into Maldives Retirement Pension Scheme and is drafting the regulation for disability insurance after the Board has approved its introduction. Under Component C, the Public Accounting System consultant has completed or nearly completed the upgrading/updating all relevant SAP modules except the BPC module due to various delays. An amendment to the contract is being negotiated in order to extend the service duration and possibly the scope. Under Component D, the system development work for the Social Protection Information System (SPIS) has completed the first stage and the prototype system has been provided to National Social Protection Agency for testing. More importantly, the reform on electricity and food subsidies has gained momentum and the targeting system to ensure the social protection benefits reaching the poor is now being implemented. Because the Government has not taken appropriate actions to resolve the "double pensions" and the sustainability of universal social pension to senior citizens, the IDA will consider cancelling the disbursement related to the Project Component "Pension Payouts", which has been under suspension since July 18, 2014. A project restructuring will be carried out to better support the Government's new effort in re-registering electricity subsidy beneficiaries under the Project Component D. 3/4/2015 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives - Pension and Social Protection Administration (P104743) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  High  High Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Substantial  Substantial Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Low  Low Environment and Social  --  Low  Low Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL New Systems under MPAO operational, including the establishment of new office of the MPAO, governance structures, MIS and provisions for outsourcing. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Operational Key GoM cash Operational acceptance acceptance certificate transfers Value None certificate was issued on was issued on the administered the MPAO MIS MPAO MIS through MPAO Date 31-May-2009 15-Sep-2014 15-Sep-2014 30-Jun-2015 3/4/2015 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives - Pension and Social Protection Administration (P104743) PHINDPDOTBL  Increased public awareness about the new pension system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Since May 1, 2014, 10 Since May 1, 2014, 10 information sessions information sessions were organized for were organized for 1342 1342 participants. One participants. One particular topic is the particular topic is the enrollment of self- enrollment of self- employed workers in employed workers in the Significant the MRPS. Since Dec MRPS. Since Dec 2013, improvement in 2013, 10 TV talk 10 TV talk shows, 6 understanding shows, 6 newspaper Value none newspaper articles, and of the pension articles, and a number a number of radio system as of radio programs, programs, media reflected in the media briefing briefing programs, public end-line survey. programs, public lectures highlighted this lectures highlighted this new opportunity and new opportunity and provided information provided information related to the process related to the process and the incentive and the incentive benefits. benefits. Date 31-May-2009 15-Sep-2014 15-Sep-2014 30-Jun-2015 PHINDPDOTBL  Generation of payroll data for civil service personnel used for assessing mandated contributions for the new pensions system. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 110 out of 123 Male' 110 out of 123 Male' 100% of GoM based agencies have based agencies have agencies in Value None completed the completed the Male use HR HR/payroll module roll- HR/payroll module roll- module for out. out. PAS. Date 31-May-2009 15-Sep-2014 15-Sep-2014 30-Jun-2015 PHINDPDOTBL  Development and implementation of management information systems and processes for targeting, disability administration abd health insurance (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target New MIS systems and processes fully implemented; SPIS contract signed SPIS prototype system relevant staff Value None and the Gap Analysis has been delivered to trained. completed the NSPA for testing Strategy for integrated national social 3/4/2015 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives - Pension and Social Protection Administration (P104743) protection systemdevelop ed. Date 31-May-2009 15-Sep-2014 31-Jan-2015 30-Jun-2015 PHINDPDOTBL  Payout of accrued pension rights to public sector workers retiring during the project period (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Payout of rights Payout of rights of all Payout of rights of all of all those those retired between those retired between retired between Value None Oct 2013-Mar 2014 Oct 2013-Mar 2014 Oct 2013 - Mar completed completed 2014 completed. Date 31-May-2009 15-Sep-2014 15-Sep-2014 30-Jun-2015 Overall Comments There have been some progress made in the PDO indicators. The MPAO is preparing the regulation related to supplemental disability insurance for MRPS members after its board has approved the Strategy for roll-out plan of disability insurance. The public information campaign activities has been focusing on the self-employed workers' participation to MRPS. The roll-out for generating pay-roll data for pension contribution by public employees is continuing. The Social Protection Information System prototype has been delivered to the NSPA for testing.The disability certification and determination process has been finalized and the documents were sent to Ministry of Law and Gender for gazette and communicated with the Attorney General. The further development of Health Insurance information system is being done in-house by the Asandha, though it may not be completed given the institutional change related to Asandha. Intermediate Results Indicators PHINDIRITBL  Key Policy Decisions in MRPS implementation made (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The number of Self- Employed worker's Draft participation to MRPS Self-Employed amendments to has been rather low. participation to MRPS relevant laws in MPAO will roll out commenced. order to unify Value None additional PR activities Discussion regarding parallel pension focusing on the self- pension harmonization systems and employed workers. The was ongoing rationalize regulation on disability benefits. insurance is being prepared Date 31-May-2009 15-Sep-2014 31-Jan-2015 30-Jun-2015 3/4/2015 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives - Pension and Social Protection Administration (P104743) PHINDIRITBL  Progress in implementing a new contributory retirement program, measured by the number of accounts opened and maintained by the newpension authority (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 110828 accounts as of 110828 accounts as of Value None 85,000 end August 2014 end August 2014 Date 31-May-2009 31-Aug-2014 31-Aug-2014 30-Jun-2015 PHINDIRITBL  Progress in implementing a new basic pension scheme measured by the number of payments made and by strengthening the automatic clawback mechanisms (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Automatic linkages with 15846 beneficiaries 15846 beneficiaries other programs Value none receive payment of receive payment of to improve basic pension basic pension administration of claw-back Date 31-May-2009 31-Aug-2014 31-Aug-2014 30-Jun-2015 PHINDIRITBL  Regular reporting of contributions and balances to members, including recognition bonds (RB) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target On-line access Online access to Online access to to individual individual member individual member accounts and Value None account information is account information is complaints available available procedure fully implemented. Date 31-May-2009 15-Sep-2014 15-Sep-2014 30-Jun-2015 PHINDIRITBL  Reporting and compliance procedures defined and implemented, including regular monthly reporting of basic pension benefits paid and contributions collected (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target MPAO targets MPAO compliance MPAO compliance team inspection on team in place. 92 in place. 92 inspections Value None high risk inspections carried out carried out since Jan 1, compliance since Jan 1, 2014 2014 cases. Date 31-May-2009 15-Sep-2014 15-Sep-2014 30-Jun-2015 3/4/2015 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives - Pension and Social Protection Administration (P104743) PHINDIRITBL  Effective supervision by the CMDA of the pension program administration and framework for new investment instruments (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Pension Supervision Pension Supervision unit Framework for unit established and established and new investment Value none developed regulatory developed regulatory instruments capacity to carry out capacity to carry out defined and onsite supervision onsite supervision implemented. Date 31-May-2009 15-Sep-2014 15-Sep-2014 30-Jun-2015 PHINDIRITBL  Development and implementation of new process for annuitization in MRPS. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Annuitization options Annuitization options Policy on explored but decided explored but decided not annuitization Value None not viable given the viable given the evaluated by prevailing market prevailing market the MPAO condition condition Board. Date 31-May-2009 15-Sep-2014 15-Sep-2014 30-Jun-2015 PHINDIRITBL  Assessment of options for determination of disability and required systems (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Disability determination Disability determination Disability process established. process established. administration Training related to Training related to provisions fully Value None disability determination disability determination implemented; commenced in August commenced in August relevant staff 2014. First pilot training 2014. First pilot training trained. conducted at GN atoll conducted at GN atoll Date 31-May-2009 15-Sep-2014 15-Sep-2014 30-Jun-2015 PHINDIRITBL  Development of options and piloting of new approach to targeting of social benefits (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target New targeting system full The PMT approach for The PMT approach for implemented Single Parent Single Parent Allowance Value None for at least one Allowance program has program has been field social been field tested twice tested twice protection program. 3/4/2015 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives - Pension and Social Protection Administration (P104743) Date 31-May-2009 15-Sep-2014 15-Sep-2014 30-Jun-2015 PHINDIRITBL  Direct project beneficiaries (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 79207.00 79207.00 95000.00 Date 31-May-2009 30-Aug-2014 30-Aug-2014 30-Jun-2015 PHINDIRITBL  Female beneficiaries (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 31.00 31.00 33.00 Date 31-May-2009 30-Aug-2014 30-Aug-2014 30-Jun-2015 PHINDIRITBL  Beneficiaries of Basic Pension scheme (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15846.00 15846.00 17000.00 Date 31-May-2009 30-Aug-2014 30-Aug-2014 30-Jun-2015 3/4/2015 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives - Pension and Social Protection Administration (P104743) PHINDIRITBL  Contributors of the MRPS scheme (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 72351.00 72351.00 85000.00 Date 31-May-2009 30-Aug-2014 30-Aug-2014 30-Jun-2015 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P104743 IDA-46110 Effective XDR 2.60 2.60 0.00 2.60 0.00 100% P104743 IDA-H6940 Effective XDR 7.60 7.60 0.00 4.82 2.78 63% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P104743 IDA-46110 Effective 12-May-2009 12-Aug-2009 22-Oct-2009 31-Dec-2012 30-Jun-2015 P104743 IDA-H6940 Effective 02-Jun-2011 07-Aug-2011 03-Nov-2011 30-Jun-2015 30-Jun-2015 Cumulative Disbursements 3/4/2015 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives - Pension and Social Protection Administration (P104743) Restructuring History Level Approved on 25-Jun-2012 ,Level 2 Approved on 06-Feb-2014 Related Project(s) P125700-Maldives - Pension and Social Protection Additional Financing 3/4/2015 Page 10 of 10 Public Disclosure Copy