Job vacancy Consultant for Supporting The Development of The National Social Security Fund Investment Strategy

The National Social Security Fund (NSSF) is the primary social security institution in Cambodia. It was established in 2008 with the aim of providing Occupational Risk insurance to private sector employees. NSSF has since then expanded its scope and coverage. As of 2024 the NSSF operates the contributory schemes of Employment Injury, and Health Care, and Pensions for both the public and private sector employees.

The GIZ’s project “Social Health Protection IV, Cambodia” supported, in 2021, the development of an investment strategy for the old age pension scheme in preparation of the scheme’s implementation. In 2023, the International Labour Organization (ILO) carried out the 1st actuarial valuation of the NSSF schemes and an institutional modernization review. According to the findings from the studies, NSSF reserve funds are placed in savings accounts and terms deposits in private banks in Cambodia. Besides, investment governance is not yet defined as the Trustee Council (as a Board-level Committee), created by the law, and assigned responsibility to oversee the investment of NSSF funds has not yet been appointed.

Following the implementation of the pension scheme in 2022, the need for NSSF to ensure that there is an appropriate investment governance framework so as to develop and enact an appropriate investment strategy is compelling. More precisely the NSSF requires an investment policy that is consistent with the nature of each scheme’s objectives and the characteristics of the underlying liabilities (nature, maturity etc) whilst respecting good governance principles and the constraints of investment. It is therefore critical that a formal and comprehensive investment policy be put in place, and that the investment management function of the scheme operates effectively and in line with the principles and structures set out in the ISSA Investment Guidelines.

OBJECTIVE

The ILO is seeking to engage external advice to support the NSSF in developing the investment department’s knowledge and capacity on social insurance investment management and to support NSSF in developing an investment strategy to guide asset allocation, establish performance targets and other strategic and operational initiatives to ensure the liquidity and sustainability of the funds under management. The external collaborator is also expected to develop an investment risk management framework to support the monitoring of risk based on the investment strategy adopted by NSSF. This work consists of the following key tasks:

• Develop a capacity development training course for the NSSF investment department, covering at least the following topics:
• Investment missions, belief and objectives o funding objectives and risk tolerance
• investment constraints o Risk budgeting
• Compliant procedure
• Risk and return characteristics of assets o efficiency of investments
• liquidity requirements
• Performance, risk analysis and measurement, and benchmarking o reporting and disclosure
• Ensure NSSF understanding and ownership of the 2021 investment strategy, through multiple presentations and interactive exercises with the NSSF investment department.
• Support the NSSF investment department preparation for peer-to-peer learning with other social insurance institutions members of ISSA and ASSA.
• Develop an investment risk management framework and delineate the required operations and procedures to effectively put it in place, to be prepared collaboratively with NSSF.

The process is expected to be highly participatory and ensure that the NSSF staff and key stakeholders such as the Ministry of Labour and Vocational Training, the Social Security Regulator, the General Secretariat for the National Social Protection Council, and the Board Members of the NSSF are consulted and can oversee the advancement of the assignment.

Requirements

• The external collaborator is required to have the following qualifications:
• Minimum of 10 years of relevant working and managerial experience in investment management and/or consulting, fund management, private equity or a related field. Experience in social security investment is an asset.
• Proven track record of developing and delivering curriculum on investment and risk management adapted to learners with elementary knowledge of the topic.
• Familiarity with ISSA investment guidelines and other investment governance frameworks
• Knowledge of investment landscape in Cambodia
• Uphold high standards of integrity, professionalism and ethical conduct
• Fluency in English, knowledge of Khmer is an asset
• An advanced degree in business, finance or related discipline from a leading university