Senior Actuary to conduct Actuarial Valuation of Cambodia’s Social Security Fund

Background

Cambodia has an ambitious plan of accelerating economic growth over the coming decades. In addition to the pursuit of growth, meeting the growing aspirations of the population requires policies targeting the reduction of vulnerabilities. Aware of these challenges, the Government has placed Social Protection at the core of its priorities. The launch of the National Social Protection Policy Framework (2016-2025) was a milestone and illustrates the importance placed on social protection, which for the first time combines social security (including social health insurance) and social assistance under one single strategy. The National Social Security Fund (NSSF) has a major role in the young system. It was established in 2008 under the provision of the 2002 Law on Social Security. The Employment Injury Scheme was launched in the same year, followed by the establishment of the mandatory Social Health Insurance (SHI) in January 2016. The pension scheme is expected to be rolled out later in 2022. The National Social Security Fund (NSSF) currently counts more than 2 million members.

The ILO is supporting the development of the NSSF and more broadly the social security system in Cambodia through analysis, evidenced based policy and financial decision making, capacity building work and knowledge transfer which will complement other ILO work on social protection. As part of this work carrying out a full actuarial valuation is a key element to ensure that policy and financing decisions are evidence based. The ILO will therefore carry out actuarial valuations of the following existing and proposed NSSF schemes:

•             Employment Injury Scheme

•             Social Health Insurance Scheme

•             Pension scheme

More details of each scheme are set out in the Appendix to these Terms of Reference.

This work will form the basis for decisions on reforms to current schemes and the improvement of management, administration and communication processes. Part of the work will include an analysis of the impact of a transfer of Civil Service employees into the NSSF under different possible scenarios with an assessment of the financial impacts on the Fund and policy implications.

Whilst the ultimate aim of this work is to deliver the actuarial valuation and report and associated policy and financing technical support as set out above, a key element is to deliver training and ensure a transfer of knowledge and expertise as well as activities to strengthen actuarial and technical capacities within the NSSF.  The work will also provide to counterparts a detailed and user friendly version of sub-models  ILO POP and ILO LAB as potential preparation for an eventual adoption of the new ILO model by the NSSF as a basis for a future actuarial valuation (the new model requires these elements as input).

To carry out this work, a Modelling Actuary, Valuation Actuary and Senior Actuary exCOLL are required.

These ToRs refer to the Senior Actuary position. All of the work will require close coordination with the ILO Cambodia Social Protection Team and Head of the Regional Actuarial Services Unit in Bangkok who will technically back stop the work.

The following key deliverables will be produced under the project:

• Final Actuarial Valuation Report including legal compliance against ILO Conventions and Recommendations and a signed Actuarial Opinion. The report will include relevant sections on different reform
• Delivery of user-friendly ILO POP and ILO LAB sub-models plus accompanying manual and supporting documents
• Technical Note and analysis on civil service pension reform options 

Scope of work and specific tasks of the Senior Actuary

The consultant is expected to carry out the following tasks:

1. Review, provide input and approve the summary document of benefit structure and financing provisions of the schemes to be valued taking into account any change and amendments made since the start of the operation of the schemes.
2. Review the data request drawn up by  the Modelling Actuary and the Valuation Actuary to be sent to the NSSF and manage the data collection, analysis and management process working with the Valuation and Modelling Actuary and in conjunction with the ILO Social Protection Team and NSSF staff. This work will include any amendment to the data request required, coordination with the data analysts within the NSSF and relevant use of external data sources to ensure appropriate data is collected and assessed for suitability from the viewpoint of the data requirements for the ILO actuarial model. Review the written summary of data (produced  by the Modelling Actuary  and the Valuation Actuary) for presentation to the NSSF and inclusion in the valuation report.
3. With the Valuation Actuary and the Modelling Actuary, formulate general as well as scheme-related demographic and economic assumptions for discussion and coordination with the ILO Social Protection Team and at a later point with the NSSF. Draw up documents validating the assumptions and potential parametric modifications and reform options, to be assessed in the valuation. Coordinate with the Modelling and Valuation Actuaries and the ILO Social Protection Team to deliver a presentation to NSSF, take part in discussions and answer questions with a view to sign off on the assumptions to be used after consultation.
4. Work with the Valuation Actuary and Modelling Actuary in developing the model structure and calibration of the actuarial model. Provide high level review of user-friendly version of ILO POP and ILO LAB that can be delivered to the NSSF.  .
5. Review the manual setting out the key elements of the model
6. Carry out the actuarial valuation together with support of the Valuation and Modelling Actuary  to develop demographic and cashflow projections and to analyse future financial implications of  current schemes and reform options. The work will include an experience analysis on demographic and financial developments since the start of the operation of the schemes already in operation and reconciliation with cash flows projected as at the valuation date. This part of the work will also include running a number of parametric reform options and providing recommendations for measures required to address the overall sustainability and adequacy issues as well as sensitivity analysis on key assumptions.  It will include the analysis of the potential transfer of some or all Civil Service employees from their own pension scheme (and therefore require the relevant data request for these workers).
7. Draft the actuarial valuation report with the input of the Valuation and Modelling Actuaries. The valuation report will include a summary of different reform options referred to in (v) above as well as the normal standard sections of ILO actuarial valuation reports. Submit the draft actuarial valuation report to the ILO Social Protection Team and respond to issues raised and further requests for more information. The final draft report will be submitted to the NSSF for comments.
8. Finalisation of the actuarial valuation report after feedback from NSSF and the ILO Social Protection Team to reflect comments received.
9. Review a separate technical note summarising policy and financing options and their cashflow implications in respect of the transfer of some or all Civil Service employees into the NSSF based on work of  the Valuation and Modelling actuaries,
10. Deliver a Presentation with input from the Modelling Actuary, the Valuation Actuary and the ILO Social Protection Team on the results and recommendations which will be presented to NSSF and relevant stakeholders and will summarise the key findings.

The consultant is expected to carry out their work with an emphasis on sharing and collaboration with NSSF counterparts where necessary. The consultant will work under the supervision of the ILO Cambodia Social Protection Team, with technical backstopping as well as quality assurance of the actuarial work carried out by the Head of the Regional Actuarial Services Unit based in Bangkok.  The Senior Actuary will be expected to manage the work of the Valuation Actuary and Modelling Actuary in a proactive way to ensure deadlines are respected.  

The Ex-Coll will work in close collaboration with the NSSF. The consultant is expected to adopt a methodology of work that encourages active participation of relevant stakeholders.

Expected Outputs

Output 1. (Activities i., ii. and iii.)  Formal approval of benefit summary and data request. Presentation document of key assumptions and inputs which will be presented to NSSF.

Output 2. (Activities iv. and v.)  Review and approval of Valuation Model and manual.

Output 3. (Activities vi. and vii).   Produce and deliver a draft actuarial valuation report, incorporate suggested changes and then produce a final valuation report after input from stakeholders. The report will include detailed information on assumptions, data and results and results using appropriate graphics and summary tables illustrating the results on a base scenario with sensitivity analysis as well as the assessment of reform options.

Output 4. (Activity viii and ix).   Review a Technical Note and Recommendations paper summarising the different implications of the different reform options for Civil Service employees potentially transferring to the NSSF. Presentation of actuarial valuation results and recommendations.

Duration 

The work is expected to be conducted between November 2022 and September 2023 for an estimate of 106 working days. 

Required profile

The Ex-Coll is required to have the following qualifications and experience:

• Qualified Actuary[1];
• 15+ years of experience as an Actuary in the social security field, including experience in Asia;
• Experience of calibrating, reviewing and using actuarial valuation models, including health insurance models;
• Extensive experience of reviewing and undertaking the data collection and analysis process;
• Experience of writing and reviewing actuarial valuation reports
• Strong knowledge of international social security guidelines on actuarial work including IAA and ILO/ISSA publications;
• Ability to adapt to different working environments and to propose alternative options and recommendations to suit a specific country context.
• Strong critical analysis and presentation skills and report writing experience;
• Excellent English writing skills;
• Good team work and communication skills;

Selection process

The applications will be evaluated based on the experiences of the actuaries in delivering the work. Two-step assessment will be used in the evaluation with the technical qualification will be assessed first. As the second step, only the financial proposals of those who passed the technical scoring will be evaluated.

Submission of application           

The interested actuaries should send their CVs to PN2-SOCPRO@ilo.org. The financial proposal shall be submitted separately to kanhchana@ilo.org. Both CVs and financial proposals are to be submitted by 31st October 2022 at 5pm, local time in Phnom Penh, Cambodia. Late submissions will not be considered. Applications submitted directly through UNGM-EoI will not be considered.