AFRICAN DEVELOPMENT BANK GROUP
STAFF RETIREMENT PLAN
REQUEST FOR EXPRESSIONS OF INTEREST
FOR
PENSION CONSULTANCY SERVICES
Reference : SRPU/EOI/PENSION SERVICES-HYBRID SCHEME/2021
AFRICAN DEVELOPMENT BANK
STAFF RETIREMENT PLAN
Avenue Joseph Anoma
01 BP 1387
Abidjan 01, Côte d’Ivoire
STAFF RETIREMENT PLAN UNIT
EMAIL: plan_administrator@afdb.org
Title of the assignment : SRPU/ PENSION SERVICES-HYBRID SCHEME
Brief description of the Assignment : The objective of this assignment is to provide active support to the Staff Retirement Plan to ensure smooth and full implementation of the hybrid scheme. A consultant, for whom terms of reference are defined below, will be recruited for this purpose.
Profile of the consultant : The Consultant must have at least a Masters’ degree in the areas of Actuarial Science, Mathematics, Accounting, Business Administration, Economics, Finance, Management, Investment or a related discipline. A Professional license in investment issues is desirable. He/she shall possess a proven record of accomplishment of at least 10 years, specific experience in pension benefit administration and investment in respect of defined contribution scheme or in an asset management company.
The Consultant shall also have good interpersonal skills, good communication skills and very good command of English and a desirable understanding of French.
Individual consultants are invited to indicate their interest in providing the above -described services.
Place of assignment : The consultant will work under the responsibility of the Plan administrator of the Staff Retirement Plan based in Abidjan, Ivory Coast.
Duration of the assignment : Six months from the date of commencement
Tentative Date of commencement : 1st December 2021
Applications to be submitted using the following address: plan_administrator@afdb.org
Deadline for applications : 22 October 2021, not later than 17:00 GMT
and must be clearly marked : “ SRPU/EOI/PENSION SERVICES-HYBRID SCHEME/2021”
Interested eligible consultants shall provide :
- A cover letter of maximum 300 words;
- Their Curriculum Vitae using the format in Appendix 1 and
- A financial proposal for the services :
Eligibility criteria, establishment of a shortlist and the selection procedure shall be in conformity with the Bank’s Rules and Procedures for the Use of Consultants under projects financed by the Bank Group. Please note that the interest expressed by a Consultant does not imply any obligation on the part of the Bank to include him/her in the shortlist.
It is required that all consultants of the Bank be registered in our database of using the following link: https://econsultant.afdb.org:44356/welcomedacon#.
Any questions and requests for clarifications may be sent to: plan_administrator@afdb.org
TERMS OF REFERENCE :
- Background :
1.1 The Staff Retirement Plan (SRP or the “Plan”) of the African Development Bank (the “Bank”) was established by Resolution No. 05/89 of the Board of Governors on 31 May 1989 and became operational on 1st January 1990. The Plan is a Defined Benefits (DB) and Defined Contribution (DC) Scheme providing the following benefits: normal and early pension, death benefit (spouse and children), disability pension, withdrawal benefit and DC capital.
The main objective of the Plan is to provide income security to participants after separation from the Bank or to their survivors at the time of death of the member.
Regular benefits are paid monthly or quarterly to pensioners in several currencies and are adjusted annually with the cost-of-living adjustments (COLA).
The Plan is financed by contributions from participants (9% of salaries) and the Bank (18% of salaries), as well as income generated from investments of the Plan’s assets which are invested by external asset managers in Africa and in the international financial markets.
The administration of the Plan is vested in three entities: the Steering Committee, the Investment Committee and the Plan Administrator.
The Steering Committee has the responsibility of :
- formulating the strategies and major policies of the Plan ;
- supervising the administration of the benefits provided under the Plan;
- reviewing and following up the periodic actuarial valuation of the Plan;
- monitoring the activities of the Plan Investment Committee.
The Investment Committee is responsible for the assessment of the global management of the Plan portfolio, payments made, the review of the sustainability of the Plan with an overall responsibility for the financial management of the Plan.
The Plan Administrator conducts the day-to-day operational and administrative business of the Plan and, subject to other provisions of the Plan, acts as the official representative of the Plan. The Plan Administrator office comprises two sections :
- Investment management service ;
- Benefit administration service
Key documents of the Plan Administration are :
- Plan rules approved by the Board of Directors which governs the Administration, Investments and Benefits of the pension plan ;
- Administrative rules approved by the Steering Committee which interprets and complements the provision of the Plan ;
- Governance manual which describes the Governance and Administration structure of the plan, presents policies and procedures, guidelines, templates and examples relevant to administration and operations of Plan ;
- The Plan 2020 Annual report which provides most recent information on the Plan membership, its Assets, Liabilities and Funding adequacy.
A number of reforms have been made to the Plan in the last two decades, including:
- 2004: Definition of the role of the Bank towards the Plan ;
- 2007: Inclusion of employees in Regional and Country offices of the Bank to the SRP ;
- 2008: Introduction of spouse pension and reduction of early retirement reduction rates ;
- 2009: 1st Financial Sustainability Reforms of the SRP ;
- 2010: Creation of the SRP Administration ;
- 2011: Adoption of new commutation factors ;
- 2012: Increase in the retirement age to 62 ;
- 2015: 2nd Financial Sustainability Reform of the SRP ;
- 2018:Introduction of DB/DC (Hybrid) Scheme as an Alternative Plan Structure.
Key interactions :
Within the Bank, the Plan Administration office interacts with the Human Resources, Treasury, Financial control, IT, Internal Audit and Risk Departments and outside the Bank, its principal stakeholders are the actuaries, the consultants, the asset managers, the external auditors and sister organizations.
- Objective of the Assignment :
Under the supervision of the Plan Administrator, the consultant will be responsible for the implementation and the management of the Plan’s Hybrid Scheme. The consultant will also draft the Plan’s annual report, develop communication materials and conduct seminars to foster a solid foundation of financial planning awareness for staff from all stages of life.
- Scope and deliverables :
The Consultants will have the following additional responsibilities :
Operational :
- Ensure that all Hybrid Scheme members and potential members are properly informed so that they are able to exercise their rights under Plan Rules ;
- Develop, update and deliver communications to enhance the general level of understanding of the Hybrid Scheme’s provisions, operations and benefits to members including the provision of scheme literature ;
- Prepare, organize and conduct financial seminars to foster a solid foundation of financial planning awareness for Bank staff from all stages of life ;
- Ensure that the Hybrid Scheme provides accurate, up-to-date records of members’ decisions and the benefits that have accrued to them ;
- Deliver accurate and timely reports (including statistics) on a quarterly basis, and as required, on the financial status of the Hybrid Scheme ;
- Develop the Hybrid Scheme’s service performance standards ;
- Periodically research leading practice in DC scheme operations and recommend enhancements to the Hybrid Scheme.
Administrative :
- Draft the Plan’s annual report, policies and procedures, update pension governance structure including Role and Responsibilities of stakeholders and Pension Committees ;
- Ensure that accurate and complete records of Hybrid Scheme members are maintained ;
- Monitor and ensure transparency, integrity and consistency of financial processes, use of funds and financial information in compliance with the Plan’s investment guidelines and best practices ;
- Recommend strategies for the improvement of financial management, accounting and information systems of the SRP, and assist in the implementation of approved solutions ;
- Lead the engagement with Plan’s actuarial service providers to provide accurate and timely management reports data and statistics as required to enable actuarial valuations, mortality studies and other technical projects; as well as to review the resultant reports for accuracy and relevance to the SRP, well as adherence to relevant practice standards ;
- Ensure compliance of the operations with the Hybrid Scheme Rules ;
- Resolve complex or controversial issues that may arise in respect of an individual’s hybrid scheme membership in liaison with the Plan Administrator and concerned parties ;
- Participate in Team Meetings to recommend strategies and methodologies to improve the financial management, accounting and information systems of FISR and assist in their implementation.
Investment Related :
- Educate and help members understand the risks and opportunities in DC investments related to their investment choices ;
- Provide professional investment decision making tools and toolkit to members for making better investment choice, taking into account their individual risk profile and circumstances ;
- Assist members to clearly read and understand the content of performance reports periodically provided to them and help them reassess their objectives ;
- Ensure quick implementation of members’ investment decisions, while monitoring the activities of the external manager, and the members’ individual account activities ;
- Establish a “Guide” to help members use online facilities to review their DC accounts and monitor their investment performance ;
- Be a liaison between the external asset manager and members and be able to bridge communication gaps between members and the external manager.
To undertake any other duties as assigned by the Plan Administrator.
- Duration of the consultancy :
The duration of this consultancy is six (6) months from the estimated starting date. Depending on performance of the Consultant, and subject to agreed variations to the scope, the terms and duration may be amended as necessary.