The World Bank Report No: ISR5594 Implementation Status & Results Maldives Maldives - Pension and Social Protection Administration (P104743) Public Disclosure Copy Operation Name: Maldives - Pension and Social Protection Administration Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 27-Jun-2011 (P104743) Country: Maldives Approval FY: 2009 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Finance and Treasury, Ministry of Health and Family, Maldives Pensions Administration Office (MPAO) Key Dates Board Approval Date 12-May-2009 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 20-Feb-2013 Last Archived ISR Date 27-Jun-2011 Effectiveness Date 22-Oct-2009 Revised Closing Date 30-Jun-2015 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) 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. Has the Project Development Objective been changed since Board Approval of the Project? ● Yes No Component(s) Component Name Component Cost TA and Capacity Building for Implementation of New Pension Program 3.20 Public awareness campaign 0.60 Public Accounting System 2.00 Administration of Health Insurance, Disability and Targeted Assistance 2.00 Pay-out of pension liabilities 8.00 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview On Aug 7, 2011, a new Financing Agreement was signed providing additional financing (AF) to the project in the amount of US$12million and extending the closing date for 2.5 years Page 1 of 6 The World Bank Report No: ISR5594 through June 30, 2015. The Letter of Effectiveness was issued on Nov 3, 2011 following the evidence of the subsidiary agreement signed between the Government of Maldives (GoM) and MPAO (as a new implementing agency for the project). Since the approval by the Board of the AF package, a number of important events and activities have taken place. In pensions, the new mandatory retirement scheme (MRS) Public Disclosure Copy continued to be smoothly rolled out to the private sector with the total number of the accounts reaching over 70,000; technical audit to assess systems and processes of the accrued rights calculations and the pension cash out procedures at the MPAO indicated no major exceptions; the work program in pension supervision and a set of TOR has been agreed with the pension supervisor (CMDA); over 15,000 beneficiaries are now receiving their monthly basic pension via bank accounts. In targeting, the work under the complementary Non Lending Technical Assistance has provided a solid ground for developing an operational manual, elaborating communications and outreach strategy, and designing MIS for a set of targeted interventions as required under the project. In disability, the TOR for a task of strengthening the disability determination and certification processes for the Disability Benefit Scheme has been developed. In health insurance, the Health Act has recently been promulgated formalizing new governance and administrative provisions for the health insurance scheme. Finally, the first disbursement under the disbursement-linked indicators component of the project related to payout of pension liabilities has been processed. Among the key pending issues are (i) continued delays in implementation under the Public Accounting System (PAS) component and frequent changes in leadership of the PAS team in the past several months, preventing from effective implementation, (ii) delays in implementation of some modules and full launch of the new MIS system of the Maldives Pension Administration Office (MPAO), and (iii) delays with defining specifications of the new MIS system for targeting, health and disability, due to the recent legal changes in the operational setup for the health insurance provisions. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Generation of payroll data for civil service Text Value None 25% of GoM agencies in Male 100% of GoM agencies in personnel used for assessing mandated use HR module of PAS Male use HR module for PAS contributions for the new pensions system. Date 31-May-2009 15-Feb-2012 30-Jun-2016 Comments This exceeds projected 20% Payout of accrued pension rights to public Text Value None Payout of rights of all those Payout of rights of all those sector workers retiring during the project period retired between Jan-Sep/ retired between Oct 2013 - 2011 completed Mar 2014 completed. Date 31-May-2009 15-Feb-2012 30-Jun-2015 Public Disclosure Copy Comments Development and implementation of Text Value None Strategy for implementation is Ongoing management information systems and under discussion processes for targeting, disability Date 31-May-2009 15-Feb-2012 30-Jun-2015 administration abd health insurance Comments Directions on the health insurance component of the MIS have been decided by GOM. This will be the core module of the new MIS, to be followed by the modules of Page 2 of 6 The World Bank Report No: ISR5594 disability and targeting (with the process currently under discussion; and short note on proposed framework for IT Public Disclosure Copy system development). Interim MIS for social assistance is in place. Increased public awareness about the new Text Value none Completed awareness Significant improvement in pension system workshops in all the provinces understanding of pension system. Date 31-May-2009 15-Feb-2012 30-Jun-2015 Comments Information sessions on public awareness were conducted in provinces and 14 public presentations were conducted in Male’. Information was also disseminated through mass media; 5 TV live programs and 10 news conferences were held. Other forms of public awareness included printing and distribution of brochures, posters and training kits. New Systems under MPAO operational, Text Value None New office and governance Key GoM cash transfers including the establishment of new office of the structure established. Full administered through MPAO MPAO, governance structures, MIS and staffing meeting needs of provisions for outsourcing. public and private sector. MIS is pending completion. Date 31-May-2009 15-Feb-2012 30-Jun-2015 Comments Currently there are 29 full time employees at MPAO Public Disclosure Copy Testing for the MIS is ongoing and is expected to be online by March/April 2012. Intermediate Results Indicators Page 3 of 6 The World Bank Report No: ISR5594 Indicator Name Core Unit of Measure Baseline Current End Target Development of options and piloting of new Text Value None Policy paper on targeting Data collection for approach to targeting of social benefits options prepared implementation of targeting Public Disclosure Copy system. New targeting system fully implemented. Awareness campaign launched Date 31-May-2009 15-Feb-2012 30-Jun-2015 Comments Assessment of options for determination of Text Value None Proposal for disability coding ongoing disability and required systems Preparations are underway to develop a proposal for disability coding and administration Date 31-May-2009 15-Feb-2012 30-Jun-2015 Comments Development and implementation of new Text Value None ongoing Ongoing process for annuitization in MRPS. Date 31-May-2009 15-Feb-2012 30-Jun-2015 Comments A consultant will be placed by June 2012 to work on policy paper and details of implementation process. Effective supervision by the CMDA of the Text Value none Program of work has been Framework for new pension program administration and framework agreed with CMDA. investment instruments for new investment instruments Regulations for custodianship designed and implemented are already complete and adopted. Regulations for Asset Management is being reviewed. Date 31-May-2009 15-Feb-2012 30-Jun-2015 Comments Public Disclosure Copy Reporting and compliance procedures defined Text Value None Progress and compliance Risk based contribution and implemented, including regular monthly reports designed and in use payment compliance reporting of basic pension benefits paid and by MPAO management in procedures defined and contributions collected making operational decisions. implemented Date 31-May-2009 15-Feb-2012 30-Jun-2015 Comments Compliance team in place, compliance audit of MRPS started during October 2011 Page 4 of 6 The World Bank Report No: ISR5594 Regular reporting of contributions and balances Text Value None Format of account statements On-line access to individual to members, including recognition bonds (RB) agreed and first round of accounts fully implemented reports piloted. All RB accounts calculated and fully Public Disclosure Copy credited. Date 31-May-2009 15-Feb-2012 30-Jun-2015 Comments The first round of statement was issued on Oct 6, 2011. Progress in implementing a new basic pension Text Value none Around 16,000 beneficiaries Automatic linkages with other scheme measured by the number of payments are being paid programs to improve made and by strengthening the automatic administration of claw-back clawback mechanisms Date 31-May-2009 15-Feb-2012 30-Jun-2015 Comments Progress in implementing a new contributory Text Value None 83,400 active accounts ongoing retirement program, measured by the number Date 31-May-2009 15-Feb-2012 30-Jun-2015 of accounts opened and maintained by the Comments This by far exceeds projected newpension authority 40,000 accounts Key Policy Decisions in MRPS implementation Text Value None Regulation on participation of ongoing made the foreign workers approved by MPAO Board Date 31-May-2009 15-Feb-2012 30-Jun-2015 Comments Data on Financial Performance (as of 23-Feb-2012) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P104743 IDA-46110 Effective 12-May-2009 12-Aug-2009 22-Oct-2009 31-Dec-2012 P104743 IDA-H6940 Effective 02-Jun-2011 07-Aug-2011 03-Nov-2011 30-Jun-2015 Public Disclosure Copy Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P104743 IDA-46110 Effective XDR 2.60 2.60 0.00 1.69 0.91 65.00 P104743 IDA-H6940 Effective XDR 7.60 7.60 0.00 1.12 6.48 15.00 Disbursement Graph Page 5 of 6 The World Bank Report No: ISR5594 Public Disclosure Copy Key Decisions Regarding Implementation No decisions have been entered Restructuring History There has been no restructuring to date. Related Projects P125700-Maldives - Pension and Social Protection Additional Financing Public Disclosure Copy Page 6 of 6