Making The Case for an Old-Age Social Pension in Federal Iraq

Making The Case for an Old-Age Social Pension in Federal Iraq
Social Protection Consultancy
September – December 2024
BACKGROUND: PENSION SYSTEM IN FEDERAL IRAQ
The pension system in the Federal Iraq is a mosaic of fragmented schemes shaped by the country’s complex
political history. A contributory pension scheme serving public sector employees is characterized by high
coverage and relatively generous rules and benefits. This includes public sector workers who retired before 2006
and their survivors, whose pensions are funded from the government budget.
Alongside this, there is a contributory pension scheme for private sector workers, recently reformed through
legislative changes introduced by the Law on Pension and Social Security for Private Sector Workers No 18 of
2023, supported by the ILO. In spite of its strong alignment with the ILO Social Security (Minimum Standards)
Convention, 1952 (No. 102), ratified by Iraq in March 2023, its coverage is rather low and benefits are less
generous compared to the public sector. The private sector pension scheme has been estimated to cover about
350,000 workers in 2024.
A third component of the pension system includes budget-financed schemes for beneficiaries of the contributory
system before 2006, as well as non-contributory benefits for families of martyrs and victims of terrorism and
political persecution.
Despite what appears to be an extensive coverage, the majority of the elderly population does not receive
individual pensions. Instead, they rely on social assistance from the Social Safety Net (SSN), a household-based
poverty targeted programme, personal savings, intra-household financing, and/or other informal support
mechanisms. The SSN programme provides support to households living below the poverty line who are not
covered by the contributory pension system, including elderly individuals. Approximately 225,000 older persons
benefit from such cash transfers.
RATIONALE
The Ministry of Labour and Social Affairs (MoLSA) is currently designing a Social Protection Sector Strategy for
2025-2030. The strategy adopts a right-based approach to social protection, by focusing on increasing access to
social protection benefits and services, both contributory and tax-based, and better tailoring them to the needs of
vulnerable groups of Iraqis, including older persons.
The ILO, together with UNICEF and WFP, are implementing an EU-funded Joint Social Protection Programme to
provide technical support to MoLSA for the implementation of a right-based approach to social protection and the
progressive establishment of a social protection floor in Iraq. As part of the support planned under the Joint
Programme, the ILO seeks to initiate evidence-based policy dialogue on establishing a social pension for older
persons (sometimes called a zero-pillar Pension) by exploring options and evaluating feasibility, through a policy
paper.
The study would include the formulation of policy rationale and design options for a zero-pillar social pension in
Iraq, an analysis of existing legislation (including the Unified Pension Law No. 9 of 2014, Private Social Security
and Pension Law No. 18 of 2023, and Social Protection Law No. 11 of 2014) and other required legal frameworks,
the development of different scenarios for coverage and associated cost implications, considerations for
implementation and regular operation of the scheme. The policy paper is also expected to position old-age social
pension within the broader right-based social protection reforms and progressive establishment of social
protection floor, as well as along other existing social assistance schemes, particularly SSN and Public Distribution
System (PDS).
PURPOSE AND OBJECTIVES
This activity seeks to facilitate policy dialogue on the establishment of basic, non-contributory pension scheme
provided by the government to ensure a minimum level of income for elderly persons, regardless of their work
history or contributions to any social security system, otherwise referred to as a zero pillar. Such a system could
be universal, pension-tested or affluence tested. The paper will contribute to a broader policy dialogue on a rightbased
approach to social protection under the ongoing technical cooperation framework of the Joint Social
Protection Programme.
More specifically, the paper will:
 Formulate policy rationale for the establishment of a zero-pillar social pension for elderly persons in
Federal Iraq. The paper is expected to position such a pension in the context of ongoing right-based social
protection reforms and vis-à-vis other existing social assistance schemes, particularly SSN and PDS, to
argue for the progressive establishment of a social protection floor in Iraq.
 Propose options to design and implement the zero-pillar social pension for elderly persons in Federal Iraq.
Expand the existing knowledge on possible policy options to design a zero-pillar non-contributory pension
in Iraq, including by developing different scenarios for coverage, associated cost implications (including
financing options), and considerations on administration and governance as well as implementation and
regular operation of the scheme.
EXISTING KNOWLEDGE
To initiate policy discussions on establishing social pension for old-age persons in Iraq, the ILO, jointly with other
UN agencies, both within the EU-funded Joint Social Protection Programme and beyond its scope, has started
generating knowledge on making the case for social pension as for the tool for a right-based approach to social
protection and extension of coverage.
In August 2022, in partnership with other UN agencies including UNICEF, WFP and UNHCR, the ILO published the
“Position Paper: Building Iraq’s Social Protection Floor Framework and Recommendations”. The working paper
offers a set of strategies and options regarding the non-contributory social assistance programmes into a
coherent, effective, and impactful system that contributes to the vision of Iraq as a socially inclusive and
economically productive nation.
In February 2024, jointly with the International Monetary Fund and the World Bank, the ILO published the policy
note “Towards an Inclusive, Equitable and Sustainable National Pension System in Iraq”. The paper emphasizes
the need for comprehensive pension reforms in Iraq that enhance equity, adequacy, and sustainability of the
contributory system, while extending protection to those who remain excluded through tax-financed social
pension, especially women.
In 2024, jointly with ILO and WFP, UNICEF commissioned the public expenditure review (PER) and fiscal space
analyses (FSA) to understand affordability of social protection floor in Iraq and inform progressive
implementation of a lifecycle approach.
SCOPE OF ASIGNMENT
Under the technical supervision of the Chief Technical Advisor on Social Security, the Technical Officer on Social
Protection and the National Project Officer based in ILO-Iraq, with overall guidance of the Senior Social Protection
Specialist of the ILO Decent Work Team of the ILO Regional Office for the Arab States, the External Collaborator
will carry out the following activities:
• Identification of vulnerabilities, protection risks and coping mechanisms of the older people in Iraq and
analyses of existing social protection programmes (contributary and non-contributary), including public
and private sector old-age pensions, SSN and PDS, to establish eligibility, coverage, benefits and extent and
magnitude of exclusion by the current social protection system.
• Positioning of old-age pension withing the current social protection landscape in Federal Iraq, with a rightbased
approach in mind and a view to progressive establishment of social protection floor, and formulation
of policy rationale for establishing social pension in Federal Iraq.
• Development of various options to design a zero-pillar non-contributory social pension, their costing and
coverage scenarios. This work should present at least three (3) scenarios with varying levels of ambition,
including the one that conforms with a universal social protection (USP) approach or the social protection floor
at the least. It should also draw upon the initial options and costing proposed in the IMF-ILO-WB policy note
“Towards an Inclusive, Equitable and Sustainable National Pension System in Iraq”, and provide country
examples from developing and emerging economies whereby social pensions have been introduced while
facing policy, legal, fiscal or institutional constraints.
• Articulation of operational design considerations, including the institutional set up,
administration/governance models, financing options, the identification of applicants or beneficiaries, conduct
of outreach, qualification and payment of eligible beneficiaries. This work should take note of innovative
international experiences and practices, including those adopted as part of COVID-19 relief efforts.
• Taking into account the existing legal and institutional frameworks, including relevant provisions of the the
Unified Pension Law No. 9 of 2014, Private Social Security and Pension Law No. 18 of 2023, and Social
Protection Law No. 11 of 2014 as well as “division of labour” between State Pension Fund (SPF), MoLSA
Department of Social Security and Social Protection Commission, explore possible legal and institutional
arrangements for implementation of a social pension scheme in Federal Iraq. Given that zero-pillar social
pension for older Iraqis does not exist per se as a social protection scheme, it will ultimately require
parameters different from those contained in existing legislation and institutional set up. In such a case and
to the extent possible, the analyses should reflect on the required changes in the legal and institutional
frameworks.
SPECIFIC ACTIVITIES
• Data collection and analysis: Gathering existing resources and documentation, including existing
demographic data and any national reports produced by the Central Statistical Office or the Ministry of Labour
and Social Affairs and other data as needed, to understand vulnerabilities, protection risks and coping
mechanisms of the older people in Iraq, as well as document current gaps in old-age social protection.
• Stakeholder consultations: Conduct key informant interviews and focus groups including but not limited to
MoLSA, Social Protection Commission, other key decision-makers in the area of old-age protection, relevant
civil society organizations and elderly advocacy organizations, and other stakeholders, including elderly
women and men to be identified through inception activities. These consultations should aim to validate the
findings and observations from data analyses and identify core points for making a stronger case for zeropillar
social pension.
• Scenario development/expansion: Based in the initial options proposed in the IMF-ILO-WB policy note
“Towards an Inclusive, Equitable and Sustainable National Pension System in Iraq”, develop at least 3 scenarios
with varying associated financial envelopes that present options for introducing and gradually expanding an
old-age zero-pillar social pension on the basis of the determined and expressed needs of older Iraqis, level of
government ambition, available financial resources, existing or required legislation, institutional set up and
practical operational considerations revealed during research activities. Proposed scenarios are expected to
be presented and validated with key stakeholder in the Federal Iraq during one-day workshop. Feedback on
the preliminary results of the coverage and costing scenarios obtained from ILO technical specialists and
national stakeholders should be well considered and incorporated in the final proposal of scenarios.
• Policy paper drafting and presentation: Based on the results of the analyses and stakeholder consultations,
draft a high-quality detail policy paper on making a strong case for the establishment of social old age pension
in the Federal Iraq. The report should include:
o The assessment of vulnerabilities, protection risks and coping mechanisms of the older people in
Iraq;
o Social protection coverage gaps for old age pensions in Federal Iraq;
o The policy rationale for establishing social pension as a tool for exercising a right-based
approach to social protection that is in conformity with a lifecycle approach;
o Policy options to design zero-pillar social pension, feasible in the context of Federal Iraq,
including their costing and coverage scenarios;
o Proposals on the institutional set up, administration and governance models as well as financing
options;
o Recommendations and next steps.
The policy paper should make the case for designing and implementing social pension in the Federal Iraq and
provide policymakers compelling reason, including from the perspective of reducing poverty and vulnerability
and efficient financing of a lifecycle approach to social protection, with a variety of justified approaches for
introducing social pensions for the elderly, despite current fiscal constraints. In addition to sketching requisite
costs, institutional arrangements, legal basis and administrative tools, it should also explore means of financing
such a programme from domestic resources. The paper will be presented to key stakeholder in the Federal Iraq.
Feedback on the paper received from ILO technical specialists and national stakeholders in the course of revisions
and consultations should be well considered and incorporated in the final draft.
DELIVERABLES
The selected consultant will produce the following deliverables:
Deliverable 1 Inception report – outlining conceptual framework, research, methodology, key
existing resources, stakeholders, timeline and plan for implementation. It also
includes a bibliography with key secondary information sources to inform research
design and implementation.
Deliverable 2 Vulnerability and social protection gap analyses – outlining the main
vulnerabilities, protection risks and coping mechanisms of the older people in Iraq
and protection gaps in the existing old-age pillar of the current social protection
system. Documenting and analyzing met, unmet and partially met needs among
the target population, combining results from primary (stakeholder consultations)
and secondary findings.
Deliverable 3 Draft policy rationale for zero-pillar social old-age pension – based on the
analyses of primary and secondary data, and evaluation of policy framework, socioeconomic
situation as well as met, unmet and partially met needs among the target
population, making the case for the establishing of old-age social pension in Iraq.
Policy rational should position zero-pillar social pension as one of the tools for
right-based social protection and progressive establishment of social protection
floor in Iraq, as well as alongside other existing social assistance schemes,
particularly SSN and Public Distribution System (PDS).
Deliverable 4 Development and presentation of scenarios – developing at least 3 scenarios
with varying associated financial envelopes that present options for introducing
and gradually expanding an old-age zero-pillar social pension on the basis of the
determined and expressed needs of older Iraqis and level of government ambition.
To the extent possible, the scenarios should include proposals on institutional set
up, administration and governance models, financing options and possible legal
arrangements. Scenarios are to be validated with stakeholders at the one-day
workshop in Baghdad.
Deliverable 5 Development and presentation of final policy paper – building upon Products 1-
4, the final policy paper will make the compelling case for establishing old-age
social pension in Federal Iraq and will serve as the ground for policy dialogue. The
final paper is to be presented to stakeholders at the one-day workshop in Baghdad.
Each product is expected to be submitted for ILO approval before considered final. The ILO will review initial
drafts of products before finalization and onward continuation with the exercise. The inception report,
vulnerability and social protection gap analyses, draft policy rationale for old-age pension and scenarios should
be produced in English. Upon the request from national stakeholders, the deliverables produced in English should
be translated into Arabic. The final policy paper should be produced in English and Arabic, both versions proofread,
and copy edited.
REQUIRED INSTITUTIONAL OR INDIVIDUAL PROFILE
The contract shall only be awarded to a qualified non-profit organization or individual international consultant with
the following skills and qualifications:
 Relevant qualification in the fields of social protection or social policy, in particular for persons in old age,
non-contributory pensions, contributory pensions, social protection financing, economics, public policy or
other relevant field;
 At least seven years of proven experience in undertaking works of a similar nature, specifically related to
facilitating evidence-based policy dialogue on right-based social protection reforms, the design and costing
of social protection schemes, supporting operational arrangements, institutional management, capacity
building, etc.;
 Demonstrable experience in similar consultancy assignments (either with public, private, international
organizations, including UN agencies);
 Excellent understanding of the ILO’s approach to social protection, including old-age pension branch, and
experience in designing and implementing social protection schemes in line with the International Labour
Standards, including ILO Convention 102 and Recommendation 202.
 Familiarity with social protection system in the Federal Iraq and awareness of developments in social
protection policy;
 Demonstrable research design and administration skills, with previous experience in developing initiatives
aimed at older persons, with capacity to share know-how and guidance on techniques and tools;
 Excellent command of English and Arabic, both written and oral;
 Excellent competence in information technology, including statistical, document drafting and presentation
software (Microsoft Word, Excel, PowerPoint and other relevant software packages);
 Strong interpersonal and planning skills, attention to detail, strategic thinking and ability to relate
effectively with a wide array of stakeholders.
ASSIGNMENT DURATION AND PAYMENT SCHEDULE
The proposed duration of the assignment is four (4) months (16 weeks), from inception to completion, with a
tentative start in September-October 2024. A detailed timeline with deliverables is to be proposed by the
implementing partner in the inception report. The tentative timeline is as follows:
Deliverable Indicative timeline/Deadline Percentage Payment
Deliverable 1 2 weeks after contract signature 20% First progress payment
Product 2 4 weeks after contract signature 20% Second progress payment
Product 3 8 weeks after contract signature 20% Third progress payment
Product 4 13 weeks after contract signature 20% Fourth progress payment
Product 5 16 after contract signature 20% Final payment
PROPOSAL SUBMISSION PROCEDURE
The ILO invites qualified individual international consultants or non-profit organizations to submit their proposals
comprising of technical and financial as per the requirements specified below.
Technical Proposal
Individual international consultants or non-profit organizations shall describe in the Technical Proposal how they
intend to meet the requirements described in these Terms of Reference.
In preparing the Technical Proposal, the individual international consultants or non-profit organizations shall
review all requirements and reflect their understanding of and approach to meeting these requirements in the
Technical Proposal.
In preparing the Technical Proposal, the individual international consultants or non-profit organizations shall
provide details of the proposed methodology to approach the assignment, feasible timeline, implementation and
management plan as well as CV(s) of experts assigned to the project with a history of implementing similar projects
or working on a similar assignment as specified in this Terms of Reference.
Individual international consultants or non-profit organizations may also add any other document and information
to demonstrate their technical and professional capacities and competencies to fulfil the requirements as specified
in the Terms of Reference. Other documents may include but are not limited to academic and technical publication,
reference letters, etc.
The Technical Proposal should be submitted in English in PDF format, with each page duly signed and dated. In
case of non-profit organizations, if relevant, each page of the Technical Proposal should also be stamped.
Financial Proposal
Individual international consultants or non-profit organizations shall submit the Financial Proposal in US Dollar
following the table/format below using an Excel sheet, and submit both the Excel and the PDF versions. Each page
of the Financial Proposal in the PDF format should be duly signed and dated. In case of non-profit organizations, if
relevant, each page of the Financial Proposal in the PDF format should also be stamped. The Financial Proposal
should be valid for 90 days after the deadline for submissions.

Evaluation Process and Criteria
Proposals will be reviewed and evaluated by an Evaluation Panel, to determine compliance with the requirements
specified in these Terms of Reference.
A two-stage procedure will be utilized in evaluating the Proposals, with evaluation of each Technical Proposal
constituting 70% of the total grade being completed prior to any Financial Offer which constitute 30% of the total
grade being opened and compared.
Each Technical Proposal (70% of total grading) is evaluated on the basis of its responsiveness to these Terms of
Reference according to the criteria described below. With the maximum score of 70 points, the minimum passing
score is 60 points:
1. 30 points for understanding of the Terms of Reference and the aim of the services to be provided, clarity
of the proposal, overall methodological approach, appropriateness of tools and estimated difficulties and
challenges;
2. 20 points for feasibility of the implementation and management plan with a timeline related to the different
activities;
3. 10 points for relevance of qualifications and experience of individual consultant/proposed key personnel;
4. 10 points for proven experience in similar consultancy assignments.
During the second stage of the evaluation, the Financial Proposals (30% of total grading) of all qualified individual
international consultants or non-profit organizations which have attained at least the minimum score during the
technical evaluation (60 points) will be compared. The maximum number of points – 30 points – will be assigned to
the lowest Financial Proposal submitted by applicants. All other Financial Proposals will receive points in inverse
proportion.
The process of evaluating the proposals will be based on the percentage combination of Technical and Financial
elements.

Job Link: https://www.ilo.org/resource/vacancy-notice/making-case-old-age-social-pension-federal