Call for bids: UK-India co-operation on pensions 2023/24

The Foreign, Commonwealth & Development Office (Authority) is commissioning a supplier to support the development of the UK-India Co-operation on Pensions. The project is intended to span from August 2023 to March 2024. The key objective of the programme is to deepen knowledge-sharing on recent and planned regulatory reforms in UK and Indian pension sectors to promote economic development in both countries by facilitating greater pensions links.

FCDO leads the UK government’s work to end extreme poverty. FCDO’s strategic objectives are:

• strengthening global peace, security and governance
• strengthening resilience and response to crisis
• promoting global prosperity and economic development including finance
• tackling extreme poverty and helping the world’s most vulnerable

This programme will help India to implement its proposed economic and finance reforms, climate and infrastructure development priorities, with a view to support its long-term growth objectives. It will provide expertise and support, primarily to Pension Fund Regulatory and Development Authority (PFRDA) and Ministry of Finance.  The programme will engage in areas where the UK is well-placed to make the greatest strategic impact:

• private finance and reforms to the business environment
• tax revenue mobilisation and public finance
• high quality, low carbon and resilient infrastructure

Background

This programme is an extension of the pensions  work that was planned under the Technical Assistance Programme for Financial Services in India (FS) which was established through a Memorandum of Understanding (MoU) signed between the UK Foreign and Commonwealth Office (now Foreign, Commonwealth and Development Office) and the Indian Ministry of Finance in January 2019.

The FS Programme aimed at interventions that strengthen regulatory capacity in data analytics, risk-based supervision, product innovation, improving awareness and distribution, behavioural economics and fund management that would aim to enhance pension coverage; particularly among the economically weaker segments of the society and women. It focused on working with with the Pension Fund Regulatory and Development Authority (PFRDA) to build capacity on developing and regulating new pension products.

Through this programme we will work closely with PFRDA to support strengthening of the pensions reforms in India learning from the UK’s experience in order to promote FCDO objectives of promoting economic development and reducing extreme poverty. The programme will provide support to the PFRDA in the sharing of best practices on policy development and closer co-operation on capacity building.

The programme seeks to build on the announcement at the 12th UK-India Economic and Financial Dialogue, by the Chancellor of the Exchequer and the Hon’ble Finance Minister of India on a new partnership between the UK and India on the insurance and pensions sectors. Both sides have agreed to develop a work plan on the collaboration which will include deepening knowledge-sharing on recent and planned regulatory reforms in our insurance and pension sectors.

Key documents

Scope of services

The Supplier will be expected to finalise this programme work after discussions with the relevant stakeholders in the Ministry of Finance and the Pension Fund Regulatory and Development Authority (PFRDA) within two weeks of commencing programme delivery. This will include finalising of the logframe as in annex A in the attached ToR.

Deliver a Project Commencement Report of not more than 5 pages, covering:

• overview of the pensions sector in India for both public and private sectors in comparison to the UK, with focus on identifying key challenges and opportunities in deepening pensions penetration across India.  The report should also include the demographic comparison between the UK and India
• early lessons from the UK’s pension sector (both private and public funds) for India, with a particular focus on areas such auto-enrolment, defined contribution schemes and annuity markets
• on the basis of the research conducted in 1(a) and 1(b), set out the top 3 interventions to be delivered through the programme, along with a project plan and work plan for the same

Deliver at least 2 policy papers for regulators covering key learnings from international markets such as the UK on supporting the growth of the pensions sector in India. The policy papers will aim to be presented and ratified by the Ministry of Finance and/or the PFRDA, with topics to be agreed with these stakeholders during the project commencement phase. Emerging themes to be explored include:

• incorporation of ESG principles in pension funds business with an aim to scaling up the sustainable finance portfolio, incorporating climate change risk into existing risk management framework(s) and unlocking sustainable infrastructure investment opportunity.
• recommendations on leveraging digital infrastructure to facilitate deeper pensions penetration in India
• learnings on customer protection and data privacy, and best practices on steps taken to address these issues

Design and deliver a high level one-day conference on pensions in India, which must include:

• dissemination of the key recommendations of the policy papers finalised through the programme with key external stakeholders in Government and business.
• experience sharing sessions by experts from the UK on implementing a reforms programme for pensions growth in India
• discussions on opportunity for collaboration between the UK and India on pension development, and the case for pension funds in both countries to increase participation in each other’s jurisdictions; how India can scale up pension coverage quickly and the necessary policy mix between public and private pensions in the first phase of rollout. This event is expected to be held in in-person, in either New Delhi/Mumbai

Objectives

The following will be the expected deliverables:

The supplier needs to work with FCDO and establish relationships with the Ministry of Finance (Department of Economic Affairs and Department of Financial Services) and Pension Fund Regulatory and Development Authority (PFRDA) to deliver:

• 2 policy papers on deepening pensions penetration in India basis emerging themes set out in the scope of services above
• a high-level one day in-person conference on the pensions sector in India, leveraging learnings and inputs from UK experts
• periodic progress reports based on a mutually agreed format and frequency with FCDO
• undertake the entire management of activities outlined in the scope of work and provide periodic progress updates over email and phone call with FCDO
• submit the Programme Report in the agreed format with FCDO at the end of the programme

Expected outputs

Through this work we aim to achieve the following objectives:

We aim to achieve:

• deepening and expansion of the coverage of the pensions market in India
• wider collaboration between UK and India on pensions reform learning best practice for public and private systems alike
• identification of any obstacles to scaling up pensions in India and making recommendations to policy makers how to overcome them

The supplier is required to deliver phased outputs against set timelines (subject to confirmation):

Reporting and accountability of delivery

The Supplier will submit progress reports and update on calls to FCDO as per mutually agreed format and frequency. These will summarise progress made in agreed timelines against agreed Work Plans, including details of resources deployed.

A detailed Project Completion Report (PCR) in the FCDO format, a Project Report (in mutually agreed format) including post evaluation report to identify gaps and future opportunities in the pensions sector in India. The outputs outlined above are indicative and may be refined in discussion with FCDO as the assessment progresses.

The contractor will have to submit a Financial report (along with other reports) at the end of the project. Submission of final report (Project Report) and a summary presentation.

The Team Leader in the Economic and Finance Team will be first point of contact on the programme for FCDO. Within FCDO, a senior programme manager and senior advisor will be responsible for day-to-day co-ordination and delivery of the programme, reporting to the Team Leader.

Monitoring, Reporting, Evaluation and Learning (MREL)

A central monitoring, reporting, evaluation and learning system has been established to provide reporting on expenditure and outcomes achieved across the FCDO and delivery of tailored evaluations to determine of the quality and effectiveness of the Programmes.  These evaluations will be used to inform the FCDO about whether the operation of the Programme is meeting the required objectives (the “MREL System”).

The Service Delivery Partner should:

Capability and other information

The successful tenderer should:

• be in a position to commence the implementation by 1st November 2023 and commit to front-loading project activity to ensure a 100% spend of budget by March 2024

• work independently: whilst it is expected that the Contractor checks-in with the FCDO at identified key milestones, visits and meetings may offer the opportunity for representatives from FCDO to join the Contractor if appropriate

• have a clear understanding of India and international including UK in the requested field, and have good contacts with government agencies, research institutions and business

• have at least 10 years of experience in working with the government of India and/or financial sector regulators

• have experience of working in the pensions sector primarily in India, the UK and other emerging economies

• have experience of working with Financial sector regulators in implementing reforms bases international best practices

• have done consultancy engagements in the Pensions sector in India and the UK. Any experience of delivering Pensions projects with the Government of India and/or the PFRDA will be desirable
• experience of consultancy projects with financial sector regulators as beneficiaries
• submit a fully-costed proposal with specific timelines

Contract management

The service provider would need to follow the British High Commission – New Delhi requirement on invoicing and reporting, and provide information requested by the British High Commission – New Delhi for management and monitoring purposes.

Conflict of interest

All bidders should demonstrate their ability to avoid conflict of interest between engagements by setting up ethical walls e.g. how they track personnel and the engagements they have worked on.

In the event that the FCDO judges that these ethical walls are not sufficient, bidders may still be awarded the contract but on condition that they will be precluded from taking part in any competition for subsequent stages of any programme that they have been involved in through this contract.

Note that the final outcome of this scoping project and relevant information developed by the successful provider will be expected to be released to prospective bidders as part of the tender process for wider FCDO programmes.

Budget

This is an ODA funded programme. The budget available for the service is in the range of £ 100,000 to £110,000 inclusive of all applicable taxes. The service provider should provide quotation for each component separately. Value for Money will be one of the key evaluation criteria.

The service provider will propose the overall budget for this work which must be inclusive of all applicable taxes (detailed separately), overheads and travel costs for any field visits. Bidders are expected to show value for money.

In line with FCDO’s policy, all journeys by rail or air will be budgeted by a class of travel that is no more than “standard economy” unless higher travel classes are representative of improved value for money or are required to adhere to specific legislation, for example the Equality Act 2010. Your FCDO representative will confirm if this is appropriate and no travel should be booked in a class higher than “standard economy” without express written permission. First class travel will not be permitted under any circumstances. Alcohol and tobacco are not allowable subsistence items. Travel and living expenses will be paid at a rate consistent with the HMRC’s schedule of rates.

Actual expenses (Travel and accommodation of international speakers needs to be budgeted) that may occur for the delivery of the stakeholder engagement workshop, will be reimbursed based on actual expense. Service Delivery Partner should include the indicative costs of such expenses in the bid.

Point of delivery

The project is to be delivered in Delhi and Mumbai.

Payment schedule

For annex A, refer to the attached ToR.