Request for Proposal For Selection of Project Management Unit (PMU) For Pension and Life Insurance Fund pot

List of Acronyms MOIA Ministry of Overseas Indian Affairs POE Protectors of Emigrants PLIF Pension and Life Insurance Fund SEBI Securities and Exchange Board of India PFRDA Pension Fund

Request for Proposal

List of Acronyms

MOIA Ministry of Overseas Indian Affairs

POE Protectors of Emigrants

PLIF Pension and Life Insurance Fund

SEBI Securities and Exchange Board of India

PFRDA Pension Fund Regulatory and Development Authority IRDA Insurance Regulatory and Development Authority

UTI Unit Trust of India

LIC Life Insurance Corporation of India

PMU Project Management Unit

ICOE Indian Council for Overseas Employment

ECR Emigration Clearance Required

CRA Central Record Keeping Agency

Table of Content

1 Introduction - 5

1.1 Overview of the PLIF Scheme - 7

1.2 Key Stakeholders of the PLIF - 10

2 Scope of Work for Project Management Unit - 12

2.1 Overall functions of PMU - 12

2.2 Profile for PMU Staff - 15

* Resources proposed for the project must be with the organisation for at least 1 year - 17

3 Bidding Process - 17

3.1 Timelines for Key Activities - 17

3.2 Clarification on RFP document - 18

3.3 Pre Bid Meeting - 18

3.4 Proposal Preparation Cost - 19

3.5 Late Bids - 19

3.6 Disqualification Criteria - 19

4 Proposal Instructions and Conditions - 20

4.1 Bid Submission Format - 20

4.2 Pre-qualification Criteria - 20

4.3 General Instruction and Conditions for Bid - 21

5 Proposal Evaluation - 22

5.1 Proposal opening - 22

5.2 Clarification of Proposals - 22

5.3 Evaluation Procedure and Criteria - 23

6 Award of Contract - 23

6.1 Award Criteria - 23

6.2 MOIA's right to accept or reject any or all proposals - 24

6.3 Notification of Award - 24

6.5 Performance Bank Guarantee - 24

7 Payment terms and conditions - 25

8 PMU contract conditions - 25

8.1 Conditions of contract - 25

8.2 Governing Laws/Jurisdiction Arbitration - 26

Annexure I: Guideline for Technical proposal - 27

Annexure II: Guideline for Commercial proposal - 28

Annexure III: Forms 1,2 and 3 - 29

Form 1: Notice of Intent to Submit Proposal in response to the TOR - 29

Form 2- Format for submission of resume - 32

Form 3-Format for providing details of relevant experience - 33

Annexure IV: Technical evaluation parameters - 34

1 Introduction

The Ministry of Overseas Indian Affairs (MOIA) is dedicated to the multitude of Indian Nationals settled abroad Established in May 2004 as the Ministry of Non-Resident Indians’ Affairs, it was renamed as the Ministry of Overseas Indian Affairs (MOIA) in September 2004 Driven by a mission of development through coalitions in a world without borders, MOIA seeks to connect the Indian Diaspora community with its motherland

PLIF Scheme A combination of –

• Old age pension

• Resettlement

• Life insurance

Eligibility for the

scheme

Migrant Indian Workers with ECR passport who are emigrated

overseas on employment/ contract visa

Eligible Age Limit

(years)

18 to 50 years

Benefits • Pension in old age through PFRDA regulated framework

• Savings for Return and Resettlement Saving through SEBI

regulated mutual fund

• Life Insurance

On Return to India Option to transfer PLIF to India and to continue using the same

account for making ongoing contribution

Subscriber can withdraw the Return and Resettlement Savings

MOIA Contribution • For Women Workers: Maximum contribution of Rs 3000 Per year

for a period of 5 years

• For Men Workers: Maximum contribution of Rs 2000 Per year for

Positioned as a ‘Services’ Ministry, it provides information, partnerships and facilitations for all matters related to Overseas Indians (comprising Persons of Indian Origin (PIOs) and Non-Resident Indians (NRIs) The Ministry focuses on developing networks with and amongst Overseas Indians with the intent of building partnership with the Diaspora

Ministry of Overseas Indian Affairs (MOIA) is the nodal ministry responsible for the protection and welfare as well as social security issues of overseas Indian workers and especially for around one lakh lower income workers on temporary work permits in 17 ECR countries Emigration for

these 17 ECR countries is regulated under the purview of the Emigration Act 1983

These overseas Indian workers are unskilled and uneducated/less educated holding ECR passports They need clearance called as Emigration Check from the Protector of Emigrants,

Govt of India when travelling to ECR countries on work visa to prevent their exploitation

Indian Council for Overseas Employment (ICOE), an autonomous body of the Ministry has conducted a study to examine the social welfare needs of overseas Indian workers It identified

the following needs for overseas Indian workers:

1. Formal Pension and social security arrangements

2. Formal program for savings and resettlement

3. Life insurance cover for natural death

• Pension contribution between Rs 1000 to 12000 per year or more

• Return and Resettlement Contribution of Rs 4000 or more per

year

Exit Rules • Permitted to withdraw 50% of savings in PLIF account as

lumpsum after 5 years of joining the scheme This withdrawal will provide temporary income replacement and pay resettlement in

India

• 40% of remaining savings in PLIF account along with any continued savings subscriber chose to make upon return to India

– will be paid back as lumpsum at the age of 55

• Remaining 60%- paid back as monthly pension

1.1 Overview of the PLIF Scheme

In view of the above requirements, Ministry of Overseas Indian Affairs (MOIA) has proposed to set up Pension and Life Insurance Fund (PLIF) which will cater to the needs of overseas emigrant

workers working in 17 ECR countries Key features of the PLIF scheme are provided below:

The Scheme

The PLIF scheme aims to encourage, enable and assist overseas Indian migrant workers having Emigration Clearance Required (ECR) passports and who have emigrated overseas or are in the process of emigrating overseas on a valid temporary employment/ contract visa to voluntarily (a) save for their return and resettlement, (b) save for their old age pension (c) obtain a Life Insurance cover against natural death

Eligibility

Male and female overseas Indian workers with ECR passports and aged between 18 and 50 years who are emigrating overseas or have already emigrated overseas on employment/ contract visa are eligible to join the Fund

Benefits available under the PLIF scheme:

a) A Government co-contribution of Rs.1000 per annum in line with Swavalamban for all

PLIF subscribers who save between Rs.1000 and Rs.12000 per year in NPS-Lite for a period of five years;

b) A special additional co-contribution of Rs.1000 per annum by MOIA for overseas

Indian women workers who save between Rs.1000 and Rs.12000 per annum in Lite for a period of five years; and

NPS-c) A special Return and Resettlement co-contribution of Rs.1000 by MOIA to overseas

Indian workers who save Rs.4000 per annum towards Return and Resettlement for a period of five years

Old Age Savings by PLIF Subscribers

Individual workers will be encouraged to save between Rs.1,000 and Rs.12,000 per year towards their old age in the PFRDA regulated NPS-Lite Scheme NPS-Lite contributions will be managed

by the PSU pension funds as per investment regulations for central and state government subscribers

Return and Resettlement Savings by PLIF Subscribers

Individual workers will be encouraged to save Rs 4,000 per year to accumulate savings for their return and resettlement in a designated mutual fund under the Scheme Return and Resettlement (R&R) savings will be managed by UTI AMC

Management of the PLI Fund

Old age and R&R savings by PLIF subscribers and corresponding government co-contributions shall flow to the designated fund managers regulated by PFRDA and SEBI The old age savings of eligible overseas Indian workers, as well as corresponding co-contributions by the Government and/ or employers shall flow to the NPS-Trust Bank and shall be managed by PFRDA regulated public sector pension funds that manage the NPS-Lite assets and shall be invested as per PFRDA investment regulations The R&R savings of PLIF subscribers, along with the corresponding Government co-contributions shall flow to UTI AMC and shall be invested in a designated mutual fund scheme of UTI and as per the investment regulations prescribed by SEBI

Individual Bank-Linked PLIF Accounts

In order to accurately map individual worker contributions towards NPS-Lite, R&R and life insurance under the PLIF with corresponding Government co-contributions, each overseas Indian male and female worker shall be issued a unique PLIF account number upon enrolment in the proposed Scheme The periodic savings of each individual PLIF subscriber, along with the co-contributions by MOIA and employer, shall reflect in the individual PLIF account of each subscriber This will provide the MOIA also with a central database of PLIF subscribers and a mechanism to monitor individual contributions and benefits delivery The proposed PLIF account number shall also facilitate portability of PLIF accounts to India when PLIF subscribers relocate to India This will also help produce MIS for the Government to discontinue co-contributions after five years or when a member has relocated to India The PLIF account number shall be linked to the bank account of individual subscribers as well as to the individual customer IDs or folio numbers issued by the Central Recordkeeping Agency (CRA) under Swavalamban/ NPS-Lite, the R&T of UTI AMC and the life insurance company The proposed PLIF number shall also enable consolidated Scheme level statements to be periodically issued to individual subscribers

A bank account will be opened for each individual PLIF subscriber upon enrolment in the Scheme and the savings of overseas Indian workers under Swavalamban/ NPS-Lite and the R&R component of the PLIF shall be channelled to designated fund managers regulated by PFRDA and SEBI respectively through their bank accounts using an ECS or Standing Instruction mandate On

their return to India, PLIF subscribers would be able to continue saving for their old age through Swavalamban/ NPS-Lite using their bank accounts and the ECS/ SI mechanism

The pension and resettlement savings as well as the proposed co-contributions by the Government shall thus reflect in the individual PLIF account of each overseas Indian worker The consolidated annual PLIF account statement would enable subscribers to review and reconcile their own savings and the corresponding co-contributions by the Government or their employer, and the returns earned on these combined savings over time

Utilization of PLIF Savings by Overseas Indian Workers

Overseas Indian workers will be able to withdraw their accumulated R&R savings as a lump sum upon their return to India These savings will provide them a temporary income replacement to enable their resettlement in India The savings of PLIF subscribers in Swavalamban/ NPS-Lite shall however remain invested in a PFRDA regulated pension fund and shall be returned to them when they are old and as per PFRDA rules The lump sum R&R withdrawals as well as pension benefits through NPS-Lite shall be paid into the bank account of each individual PLIF subscriber

Life Insurance Coverage

Under the proposed PLIF, life insurance cover will be provided to overseas Indian workers so that the families of these workers receive a reasonable compensation in case of death through natural causes of the wage earner Full accumulated savings in the PLIF along with the life insurance benefit would be paid out upon death, permanent disability or terminal illness of the subscriber as a lump sum

Ministry has proposed the following implementation mechanism for the scheme for pension,

saving and insurance component:

1.2 Key Stakeholders of the PLIF

Key Stakeholders involved in the process are as follows:

• Ministry of Overseas Indian Affairs (MOIA) and its associated offices

• Pension Fund Regulatory and Development Authority (PFRDA)

• UTI-Asset Management Company (AMC)

• Life Insurance Company (LIC)

• Aggregators (To be Appointed by MOIA)

• Banks in ECR Country (for fund transfer)

• Project Management Unit (PMU)

Apart from these key stakeholders, the following will be Secondary Stakeholders

• Insurance regulatory and Development Authority(IRDA)

• Security & Exchange Board of India (SEBI)

• Central record Keeping agency (CRA)of PFRDA

• Indian Missions Abroad to enable enrolment process and follow up action

An overview of the role of each Key stakeholder is provided below:

Ministry of Overseas Indian Affairs (MOIA)

MOIA will manage the overall scheme of PLIF and would play the role of agency which will devise overall guidelines for each stakeholder Besides this, MOIA will take all necessary measures to implement the Project successfully MOIA will also engage in promotion and publicity of the scheme in India and abroad

Pension Fund Regulatory and Development Authority (PFRDA)

PFRDA regulated NPS Lite scheme will be used for Old-age saving (Pension component) The old age saving of subscriber as well as co-contribution from MOIA would flow to NPS Trustee Bank and shall be managed by PFRDA regulated fund managers who manage NPS Lite or Swavalamban assets The CRA of PFRDA would manage all transaction details related to the pension component

UTI-Asset Management Company (AMC)

UTI is envisaged to be appointed as AMC by MOIA UTI will perform the role of providing return and resettlement account to subscribers UTI would invest the contribution received from subscribers and Co-contribution from MOIA in the SEBI regulated assets of designated mutual fund scheme of the UTI

Life Insurance Company (LIC)

LIC would provide Life insurance coverage to the subscriber so that family of the subscriber would receive a reasonable compensation in case of death through natural causes of the wage earner

Aggregators

The Aggregators will be appointed by MOIA and would act as an intermediary between PFRDA,UTI and LIC and migrant workers for:

• Collection and submission of registration forms

• Subscriber enrollment through POE helpdesks

• Collecting and forwarding other instructions to/from subscribers

• Education & Awareness

Banks in ECR Country

Contribution collected by Aggregator in ECR countries will be kept in local bank account in these ECR countries This will be transferred to India on a regular basis as may be prescribed in the scheme

Contributions will not be collected by aggregators They will be debited from individual bank accounts of subscribers and transferred directly to product providers This will mitigate the risk

of fraud and problems of reconciliation in cash collections

2 Scope of Work for Project Management Unit

The successful implementation of the project of such scale, complexity and scope scheme requires detailed planning along with structured and timely execution of various activities such as:

• Assist MOIA in implementing PLIF scheme, monitor the implementation and provide MIS

• Coordination with all stakeholders on product, price and continuous monitoring of the progress made by stakeholders such as – PFRDA, UTI (AMC), LIC

• Coordination with internal Staff of the Department to ensure the new system is adopted and their roles and responsibilities are well defined and communicated

• Assist MOIA on all matters relating to and incidental to the monitoring of system implementation and operations

2.1 Overall functions of PMU

The Project Management Unit (PMU) would work as the extended arm of the Ministry to implement the project It would be primarily responsible for supporting the Ministry in the following areas:

1 Assisting in Implementation of the Scheme

2 Overall Project Monitoring and Progress Tracking

3 Assist in Implementation of IT System and IT infrastructure for PLIF

4 Coordination with Stakeholders – UTI, PFRDA, LIC, Aggregator etc

5 Coordination with internal Staff of the Ministry

Indicative responsibilities of the PMU in the above areas are given below:

Advising MOIA in policy formulation for Implementation of the Scheme:

• Assisting in formulation of the overall implementation of the Scheme

• Assist in conducting surveys and taking feedback from various stakeholders and prospective beneficiaries for development of an efficient system

• Assist in finalization of the terms of reference, remuneration, SLA for all stakeholders and subsequent monitoring of the same

• Assist in overall coordination of the scheme

• Assist in development and implementation of communication strategy

• Assist in finalization of investment guidelines for savings

Assisting Ministry in Project Tracking and Monitoring

• Assist the Ministry in ensuring that all stakeholders such as UTI, PFRDA, LIC, Aggregator are a part of PLIF system

• Assist the Ministry in planning key stakeholder workshops in coordination with the MOIA

to ensure that the project objectives, requirements and timelines are communicated to the stakeholders

• Assist the Ministry in ensuring that all important communication are sent to stakeholders and awareness is created on implementation of the scheme

• Interact and participate with all internal Ministry users in effective participation in the system

• Provide inputs to the Ministry on processes, business rule formulations etc., during the system development phase

• Monitoring effectiveness of training delivered to the Ministry officials and key stakeholders

• Assist the Ministry in ensuring that all activities required for project Go-Live have been completed by technical Service Provider and all Stakeholders

• Development of necessary templates and guidelines for monitoring SLAs and expected performance requirements of the Application, platform and network including issue resolution procedures

• Monitoring operations and service delivery, analysis of service delivery data and IT infrastructure performance

• Tracking of all issues from opening to closure; maintenance of logs/ documentation related to all issues; reporting unresolved/ open issues to the Department

• Assist department in Payment release process for agencies involved in the project (UTI, PFRDA, LIC, Aggregator)

Design of the PLIF Record-Keeping System

• Analyze the requirements of all the stakeholders of MOIA (subscriber, aggregators, partners, regulators, banks, State Governments and Missions abroad) and evolve a comprehensive set of information requirements and reporting requirements across these stakeholders

• Design a robust and scalable architecture for enabling seamless integration of all the Stakeholder systems for enabling single-view to the subscriber across the ecosystem

• Design various information flow between stakeholders and also corresponding fund flow between stakeholders without any manual intervention - fund flow from the subscriber

to the respective stakeholder and back during the entire lifecycle of the scheme

• Design a robust system architecture keeping in mind the disparate systems and also the spread of the subscribers across India and the ECR countries

• Develop a comprehensive set of functional and technical requirements for building the system This would include a comprehensive Functional Requirements Specification (FRS) and System Requirement Specification (SRS) documents

• Estimate the efforts involved in system design and development and also suggest a detailed Bill of Material (BOM) covering the applications, system software, IT infrastructure and related areas

• Evaluate and suggest options for development / sourcing of the entire record-keeping function under PLIF Scheme

Coordination with Technical Service Provider for IT system Implementation

• Vetting quality and suitability of all deliverables of application development submitted by Technical Service Provider, supporting MOIA in sign-off on various deliverables

• Advising the Ministry on IT and business architecture, developed by the Technical Service Provider, its suitability to meet the needs/requirements

• Preparation of change control proceedings, analysis of options, implications of changes required in proposed system, preparation of implementation schedules

• Review and benchmark operations against set standards as decided from time to time

• Coordinate with Technical Service Provider and department for user acceptance testing

• Ensuring that the Data Centre services have been adequately setup and the IA has been suitably tested the system in production environment before go-live

• Ensuring that the tests for synchronization/ updates/ retrieval/ restoration etc between Data centre, Disaster Recovery centre and Bunker site have been adequately conducted

• Ensuring that adequate operational guidelines/ procedures and roles/ responsibilities are documented

Coordination with other Stakeholders

• Assist the Ministry in communicating the project objectives, requirements to all Stakeholders

• Ensure stakeholders are able to understand the system

• Ensure that adequate training and handholding is provided by Technical Service Provider

Provide Technical Assistance

• PMU will be responsible for providing necessary support and strategic advises to MOIA towards the successful implementation of PLIF scheme

• PMU will be responsible for facilitating the Stakeholder consultation as and when

required during the implementation and rollout of PLIF scheme

• PMU will conduction periodic review meetings along with MOIA and other Stakeholders of PLIF scheme

• PMU will responsible for carrying out the necessary documentation required for the implementation and rollout of the PLIF scheme

• PMU will perform the task of extensive coordination with Aggregator who will be

managing the subscriber portfolio for PLIF scheme

• PMU will assist MOIA towards the design of publicity material, necessary documentation, presentation required for the smooth rollout of PLIF scheme

• PMU will be responsible for facilitating the response of Stakeholder queries on PLIF

scheme

• PMU will support the MOIA in coordinating with the product services providers in PLIF schemes

The PMU should propose 5 resources as per profile description provided below The proposed team members should have relevant experience in the domain / subject that they are proposed

to handle The Proposed staff should have completed 1 yr in the responding firm/organization The following table provides indicative profile of the resources to be deployed for the PMU

resource required

S No Position No of

resource required

• Experience in Project Monitoring and Review

• Review of deliverables submitted by Technical Service Provider

• Experience in Project Planning and Implementation, evaluation and assessment of Project plans including ability to anticipate and address the project risks

• Experience in interpreting and monitoring of SLA’s levels

• Ability to Provide feedback and recommendations

on the documents reviewed

• Experience in suggesting best practices to be adopted by the project in their domain

3 Senior

Consultant

1 • B.E /B.Tech/MCA/MBA/CA

• 6+ years of total work experience

• Should have atleast 3 years of experience of working on e-Government Projects

• Experience in monitoring of large scale Governance projects

IT/e-• Experience in programs involving extensive communication and coordination with stakeholders

• Experience in working Pension domain/Financial Sector

S No Position No of

resource required

• Ability to Provide feedback and recommendations

on the documents reviewed

* Resources proposed for the project must be with the organisation for at least 1 year

3 Bidding Process

The Bidder is expected to examine all instructions, forms, terms, requirements and other information in this RFP document Failure to furnish all information required by the RFP documents or submission of a proposal not substantially responsive to the RFP documents in every aspect would be at the Bidder's risk and may result in rejection of its proposal

The schedule of key activities for the selection of PMU through this RFP is outlined below:

Request For Proposal (RFP)and Earnest Money Deposit

27.03.2012 at 17.00 hrs