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

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 a policy dialogue on establishing a social pension for older persons
(sometimes called a zero-pillar Pension) through a policy paper.
The policy paper is expected to kick off the initial policy discussions and stakeholder consultations on a feasibility
of establishing social protection in old age in Iraq. It would seek to make the case on why it is critical to introduce
a social pension for older persons in Iraq based on a right-based approach to social protection, including by
formulating policy rationale in the context of Iraq’s socio-economic and demographic developments as well as
social protection policy landscape. The paper will also elaborate possible design options and coverage scenarios,
and, to the extent possible, advise on cost implications and give considerations for implementation and operation
of the scheme. The paper is also expected to provide examples of zero-pillar Pension schemes implemented in
countries with similar socio-economic conditions, including of their design, coverage, administration and
financing. Finally, it will also position old-age social pension within the broader right-based social protection
agenda for Iraq 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, affluence tested or other/mixed. The paper will contribute to a broader policy
dialogue on a right-based approach to social protection under the ongoing technical cooperation framework of
the Joint Social Protection Programme.
More specifically, the paper will:
• Make the case for establishing a social pension for older persons in Iraq by formulating policy rationale.
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 line with ILO Convention 102 and
Recommendation 202.
• Explore the initial 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 noncontributory
pension in Iraq, including by exploring different scenarios for coverage, associated cost
implications, financing options, and considerations on administration and governance.
• Identify key stakeholders in Federal Iraq with the potential to support and lead policy debate on
introducing and positioning old-age social pension within the social protection system in Federal Iraq.
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 Service Provider will
carry out the following activities:
• Identification of vulnerabilities, protection risks and coping mechanisms of the older people in Iraq within
the current socio-economic and demographic context and analyses of existing social protection
programmes (contributary and non-contributary), including public and private sector old-age pensions, SSN
and PDS, to understand social protection coverage and the extent and magnitude of exclusion of older persons
from the current social protection system.
• Positioning of old-age pension withing the current social protection, socio-economic and demographic
landscape in Federal Iraq, with a right-based approach in mind and a view to progressive establishment of
social protection floor, and formulation of policy rationale (case) for establishing social pension in Federal
Iraq.
• Mapping zero-pillar Pension schemes implemented in the countries with similar socio-economic and
demographic conditions, and analyse their design, coverage, administration, governance and financing
to identify elements of potential interest and applicability to the context of Iraq.
• Exploring various options to design a zero-pillar non-contributory social pension, their coverage
scenarios and possible financial implications. This work should discuss 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. The paper should also give initial
considerations for operational design, including on possible the institutional set up, administration and
governance models. This work should take note of innovative international experiences and practices,
including those adopted as part of COVID-19 relief efforts.
• Identifying key stakeholders in Federal Iraq with capacities, interest and political weight to support the
pension reform process and lead policy discussions on introducing and promoting an old-age social
pension, as part of efforts to reform Iraq’s social protection system towards a more rights-based approach.
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 Analyses of socio-economic, demographic and policy landscape of Iraq in the context of
developing a social pension for older persons;
o Overview of key vulnerabilities, protection risks and coping mechanisms of the older people in
Iraq, identification of social protection coverage gaps and assessment of their impact on income
security of older persons and their households;
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 and ILO Convention
102 and Recommendation 202. Policy rationale may include examples of introducing zero-pillar
Pension schemes in countries with a similar socio-economic context.
o Initial policy options to design zero-pillar social pension, feasible in the context of Federal Iraq,
including considerations for coverage scenarios, financial implications/costing, possible
administration and governance models as well as financing options. The discussion of possible
scenarios should include reflections on the examples of zero-pillar Pension schemes
implemented in countries with a similar socio-economic context, including their key design,
financing, administration and governance features.
o Recommendations, including on key stakeholders (e.g. institutions, parliamentarians, political
leaders and influences, CSOs) to support the pension reform process and lead policy discussions
on introducing and promoting an old-age social pension as part of efforts to reform Iraq’s social
protection system, and next steps.
The policy paper should make the case for designing and implementing social pension in the Federal Iraq and
provide policymakers with 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. The paper will be
presented to key stakeholder in the Federal Iraq to initiate policy discussion on old-age income support and
pension system reforms in line with a right-based approach to social protection. 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 Service Provider will produce the following deliverables:
Deliverable 1 Inception report – outlining conceptual framework, research, methodology, key
existing resources (literature review), 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 within the context of the
current socio-economic, demographic and social protection landscape in Iraq–
providing a snapshot of the current socio-economic and demographic context in
Iraq (including demographic projection), summarizing current social protection
policy context (existing policies and programmes), outlining the main
vulnerabilities, protection risks and coping mechanisms of the older people in Iraq
and protection gaps in the existing old-age pillar within the current social
protection system. Documenting and analysing 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, met, unmet and partially met needs among the target
population, as well as existing social pension schemes in countries with similar
socio-economic conditions to Iraq, making the case for the establishing of old-age
social pension. 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 Exploration of scenarios – exploring at least 3 scenarios 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 initial
proposals on the design, coverage, associated financial envelops, institutional set
up, administration and governance models, and financing options. The discussion
of scenarios should also integrate case studies/examples from other countries with
similar socio-economic and demographic conditions to Iraq where zero-pillar
Pension schemes were introduced, including their key design features, coverage,
administration, governance and financing.
Deliverable 5 Development and presentation of final policy paper – building upon Products 1-
4, the final policy paper will make the compelling case for initiating policy dialogue
on establishing old-age social pension in Federal Iraq. The paper should also give
indication of key stakeholders who could support the pension reform process and
lead policy discussions on introducing and promoting an old-age social pension as
part of efforts to reform Iraq’s social protection system.
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. At least two rounds of revision
for each product should be considered. Deliverables 1-4 should be produced in English. Upon the request from
national stakeholders, the deliverables produced in English should be translated into Arabic, therefore respective
arrayments for translations should be made. The final policy paper (Deliverable 5) building on Deliverables 1-4
should be produced in English and Arabic, both versions proof-read, and copy edited.
TRAVEL AND IN-COUNTRY WORK
While it is expected that the work will be largely based on desk review, the service provider may see the need for
initial in-country consultations with key stakeholders. It should be noted that due to security regulations, ILO will
not be able to support travel of international consultants to Baghdad, Federal Iraq. Respective arrangements
should be made to ensure in-country presence and/or a possibility to hold such consultations online, including
interpretation services if/when needed. In case service providers’ international personnel is expected to travel to
Baghdad, due security arrangements needs to be made from the side of the service provider.
REQUIRED BACKGROUND QUALIFICATIONS, EXPERIENCE AND
COMPETENCIES
The contract shall only be awarded to a qualified Consultancy Firm (Service Provider) with the following
qualifications, experience and competencies:
• The bidding company must have at least three years of operations in their area of business and be able to
demonstrate through its company profile and provided samples of previous work successful completion
of similar assignments to a high standard, with a preference for similar experience in the country or
region.
• The bidding company must be able to demonstrate experience in conducting analytical work on policy
advocacy in the area of social protection, particularly tax-based old-age pension, in identifying contextspecific
legal, policy and operational bottlenecks and solutions to designing and implementing tax-based
social protection programmes, including old-age pension, and in developing capacity strengthening plans
and materials in social protection.
• The lead consultant/researcher must have at least 10 years’ experience in project management and in
implementing similar activities, and be equipped with strong understanding of social security, including
familiarity with the ILO’s mandate, and the ILO’s Social Security (Minimum Standards) Convention 102.
• Other proposed team members must each demonstrate at least five years’ experience in at least one of
the following: old-age income protection policy development, designing tax-based social protection
programmes, financing for contributory or non-contributory social protection systems.
• Good sense of relevant stakeholders involved in contributary and non-contributary social protection in
Federal Iraq would be an asset, as demonstrated by similar past experience. Proven strong networks
and/or good working relations with the Ministry of Labour and Social Affairs of Iraq is an advantage.
• Proven ability to analyse complex national social security issues and data sets; to engage substantively with
multiple stakeholders and to prepare reports and publications of a high quality, technically sound with
policy-oriented conclusions and recommendations is required.
• International expertise is required, while engagement of national expertise will be an advantage. The
proposed team should demonstrate proficiency in English and Arabic. Otherwise, arrangements for highquality
translation from/to Arabic should be made.
ASSIGNMENT DURATION AND PAYMENT SCHEDULE
The proposed duration of the assignment is five (5) months (20 weeks), from inception to completion, with a
tentative start in November 2024. A detailed timeline with deliverables is to be proposed by the Consultancy Firm
(Service Provider) in the inception report. The tentative timeline is as follows:
Deliverable Indicative timeline/Deadline Percentage Payment
Deliverable 1 2 weeks after contract signature 10% First progress payment
Deliverable 2 6 weeks after contract signature 10% Second progress payment
Deliverable 3 12 weeks after contract signature 30% Third progress payment
Deliverable 4 16 weeks after contract signature 30% Fourth progress payment
Deliverable 5 20 after contract signature 20% Final payment
PROPOSAL SUBMISSION PROCEDURE
The ILO invites qualified Service Providers (Consultancy Firms) to submit their proposals comprising of technical
and financial parts as per the requirements specified below.
Technical Proposal
• Understanding of the ToRs, proposed methodology and timeframe for conducting all aspects of the
assignment;
• Presentation of the company profile;
• CVs of each of the proposed team members demonstrating their experience and competency against the
above requirements;
• outputs from past experience completed by the bidding company such as assessment reports, training
materials and plans, and/or policy papers.
Technical Proposals must be submitted in English in PDF format, with each page duly signed, stamped and dated.

ILO Website Link:

https://www.ilo.org/resource/vacancy-notice/consultancy-firms-making-case-old-age-social-pension-federal-iraq