China, People's Republic of: Capacity Development for Rural Pension Administration and Services

Sovereign Project | 44045-012

Summary

Key activities of the TA will be comprised of two major parts. The first part will consist of the formulation of proposals on how to integrate rural pension administration agencies and on how to design a rural pension management and delivery system, including the setting up of agencies at township and village levels. The second part will consist of the identification of managerial issues that must be addressed, range of services that the system will deliver, detailed operational flows, and internal control measures.

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Project Name Capacity Development for Rural Pension Administration and Services
Project Number 44045-012
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7606-PRC: Capacity Development for Rural Pension Administration and Services
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Finance - Insurance and contractual savings
Gender Equity and Mainstreaming Some gender elements
Description

Key activities of the TA will be comprised of two major parts. The first part will consist of the formulation of proposals on how to integrate rural pension administration agencies and on how to design a rural pension management and delivery system, including the setting up of agencies at township and village levels. The second part will consist of the identification of managerial issues that must be addressed, range of services that the system will deliver, detailed operational flows, and internal control measures.

The TA will involve extensive field surveys on the existing rural pension pilot projects to gather data on the current status of the rural pension system regarding its management, service delivery, and operational flows. The data from these surveys will be used as inputs into the process of designing a better rural pension system for the PRC. Targeted workshops and seminars will then be conducted for different stakeholders at various stages of TA implementation. In the initial stage, workshops will be held with the executing agency to discuss the feasibility and viability of the TA implementation plan. After field studies of typical areas have been completed, workshops will be organized to discuss lessons learned and to identify directions for next steps. Seminars will also be held for government officials and specialists in relevant fields to gather their inputs on draft reports.

Project Rationale and Linkage to Country/Regional Strategy
Impact A well functioning rural area old-age insurance system which could provide basic old age income protection for the rural population. Achievement of this impact will be demonstrated through increased participation in the rural area old-age insurance system
Project Outcome
Description of Outcome An efficient rural pension administration system is adopted in the pilot areas.
Progress Toward Outcome

Progress is being achieved based on the revised schedule, and the project will be completed by 31 October 2012.

Major activities have been done, and the final report has been drafted.

Implementation Progress
Description of Project Outputs

The TA's outputs will include one main report, two sub-reports, and one draft policy document of 'Standards of Practice'

(i) Main report: Developing capacity for management and service delivery of rural pension in PRC. The topics of the main report will include: an overview on the historical development, current situation and problems concerning the rural pension management system; a discussion on strategies for organizational structure, human resource allocation, and operational procedures; a discussion on designing internal control mechanism; and an analysis on applying different management and service delivery models to rural areas with different economic performance. The main report will also need to provide recommendations leading to policy, legal and regulatory, and administrative reforms.

(ii) Sub-report I: Capacity building for the rural pension agencies. The sub-report presents analyses and proposals for developing capacity of the rural pension agencies. It will propose institutional design, including size of organization and allocation of human resources, and relevant policies for supporting the operation of the agencies. It will consider the different economic development stage of each region to propose policy recommendations and provide suitable solutions, as needed, for rural areas' lack of human resources and funding.

(iii) Sub-report II: Operational steps and business flows of rural pension administration in PRC. The sub-report will be comprised of four parts. The first part will identify the major activities at each operational stage of the rural pension and propose the standards for how to execute those activities. The second part will develop concrete performance indicators for each operational stage and design workflows following those indicators. The third part will develop protocols for the efficient transfer of pensioners' rights among different rural areas. The fourth part will design the mechanism for checking fund flows among individual accounts, government subsidies, and collective subsidies as well as for enhancing its security.

(iv) Sub-report III: Standards of practice on operational steps and business flows of rural pension administration in PRC. The sub-report will be the policy document drafted based on all above research outcomes. The report will serve as the specific guidelines for the MHRSS and rural governments to implement and monitor rural pension systems.

Status of Implementation Progress (Outputs, Activities, and Issues)

The review mission was conducted in March 9 2011. The Mission and the MOHRSS agreed to extend the TA deadline to August 2012 considering that the TA started later than original plan. In addition, the Mission and the MOHRSS agreed on: (i) recruiting consultants by June 2011; (ii) completing rural surveys by December 2011; (iii) organizing the interim seminar in March 2012; (iv) delivering final reports by May 2012; and (v) holding the final seminar in July 2012. (March 17 2011)

Local consultants were mobilized on May/June 2011 and started their research work, survey in Beijing and collection of material and data.

Review mission fielded on 28-29 September 2011 and agreed the following with the EA:

(i) Survey in rural areas: Surveys of rural residents and pension agency staff will be completed by end 2011. The purpose of survey is to find major obstacles to efficient administration of pension services in different regions as well as needs for capacity development for rural pension agency staff;

(ii) Mid-term workshop: The mid-term workshop to discuss the survey result will be organized in the first quarter of 2012; and

(iii) Policy recommendations and implementation regulations: All the TA outputs including policy recommendations and assitance in developing implementation regulations will be delivered by third quarter of 2012.

To date (the end of September 2012), the final report has been drafted by national consultants.

The draft final report is under the peer review by the international consultant, and will be completed in October 2012.

The final workshop will be organized in October 2012 to disseminate major findings and discuss further challenges.

ADB mission will participate in the final workshop in October 2012.

The final workshop was organized in October 2012. The workshop targeted local relevant government agencies, and the project outputs were disseminated at the workshop.

Final report was submitted and all planned activities were also completed.

The project was completed on 30 November 2012.

Geographical Location PRC
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation The stakeholders, i.e., the bureau of human resource and social security at the provincial level and the city level, participated in the workshops. The focal issues were discussed among the stakeholders at the workshops, and they learned good practices and further challenges at the workshops.
Business Opportunities
Consulting Services The TA will engage one international consultant and four national consultants for a total of 30 person-months. In particular, the national rural pension service and administration specialist will be the team leader.
Procurement The international and national consultants will be selected and engaged on an individual basis in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). The proceeds of the TA will be disbursed in line with the Technical Assistance Disbursement Handbook (2010, as amended from time to time).
Responsible ADB Officer Hiroko Uchimura-Shiroishi
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
Ministry of Human Resources and Social SecurityMs. Qian Xiaoyanqianxiaoyan@mohrss.gov.cnDepartment of International Cooperation
12 Hepingli Zhongjie, Beijing
People's Republic of China
Timetable
Concept Clearance 01 Jun 2010
Fact Finding 15 Mar 2010 to 19 Mar 2010
MRM -
Approval 21 Sep 2010
Last Review Mission -
PDS Creation Date 16 Apr 2010
Last PDS Update 21 Mar 2013

TA 7606-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Sep 2010 22 Oct 2010 22 Oct 2010 31 Oct 2011 30 Nov 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 21 Sep 2010 271,209.57

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