The World Bank Report No: ISR3212 Implementation Status & Results Brazil Public Disclosure Copy State Pension Reform II TAL (P089793) Operation Name: State Pension Reform II TAL (P089793) Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Last Modified Date: 28-Apr-2011 Country: Brazil Approval FY: 2007 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry da Previdencia Social Key Dates Board Approval Date 13-Feb-2007 Original Closing Date 30-Jun-2011 Planned Mid Term Review Date Last Archived ISR Date 14-Feb-2011 Effectiveness Date 07-Oct-2008 Revised Closing Date 30-Jun-2011 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) Upgrade state pension management (RPPS system for civil servants) thereby significantly reducing unwarranted pension claims, improving financial sustainability, strengthening state and federal institutions, and building reform constituencies. See attachment for detailed Results Monitoring Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost 1. Upgrade Cadastre and Information Technology 4792.00 2. Upgrade/Implement the Integrated Pension Information System (SIPREV) 1094.40 3. Implement the Unified Administration Model 892.50 4. Strengthen State institutions through training and dissemination 599.50 Public Disclosure Copy 5. Strengthen the Ministry#s Secretary of Social Protection # SPS 2380.10 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Through December 2010 the loan still had not disbursed. However, between January and March 2011, 62 percent of loan resources ($ 3.1 million) were disbursed for the project's centerpiece activity: "recadastramento" (database clean-up) of state pension system databases. The client has signaled to the Bank that a pending disbursement request of US$ 0.9 Page 1 of 5 The World Bank Report No: ISR3212 million is waiting the reallocation of money among expenditure categories. This would make disbursement ratio to increase to 80 percent of loan proceeds. An action plan has been endorsed by political authorities and technical level staff from the Ministry for the remaining execution of the project. A project restructuring including cancellation of activities, Public Disclosure Copy reallocation of resources among categories of expense and a 6-month extension of the closing date is needed to ensure PDO is achieved and resources are fully disbursed. Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Upgrade state pension management, thereby reducing unwarranted New legislation and PARSEP Covered in the Intermediate pension claims, improving FM & sustainability, strengthening state reforms have strengthened Outcome Inidcators below. Date &federal institutions, and building reform constituencies. pension managementfor the 27-Apr-2011 Date executive branch but much Type Unit of Measure remains to be done Comment 30-Jun-2011 Custom Indicator Text Date Comment 10-Jan-2007 Comment Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Significantly reduce pension costs through cadastre upgrade to PARSEP I addressed partially 20 states with cadastre upgrade eliminate unwarranted beneficiary payments. executive, other branches must be Date completed for all branches. $150m done. New decrees may require potential benefits compliance 27-Apr-2011 Date Type Unit of Measure Date Comment 30-Jun-2011 Custom Indicator Text 10-Jan-2007 Cadastre upgrade ongoing in 17 states covering highest number Comment Public Disclosure Copy Comment possible of public servants based on available resources. Savings will be identified after completion of process. Page 2 of 5 The World Bank Report No: ISR3212 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Reduce pension costs through systems upgrade permitting cross- SIPREV developed and its 20 states cross-referencing data referencing with other data bases to eliminate unwarranted beneficiary modules used partially in 16 states Date bases payments and provide full work history information. Date 27-Apr-2011 Date Type Unit of Measure 10-Jan-2007 Comment 30-Jun-2011 Custom Indicator Text Comment SIPREV upgrade now to be Comment financed through DATAPREV (outside the project). Indicator Baseline Current End Target Indicator Name Value Value Value Identify the magnitude of pension costs and develop fiscal strategies to Actuarial analysis now a legal 20 states have completed actuarial mitigate this burden through PARSEP II actuarial analysis and financial requirement; similar package done analysis, debated results and taken Date evaluation package under PARSEP for incomplete mitigating steps cadastres; actuarial module now 27-Apr-2011 Date Type Unit of Measure exists Comment 30-Jun-2011 Custom Indicator Text Date RPPS rules now require states to send an annual actuarial report to Comment 10-Jan-2007 SPS, so this activity does not Comment require the support of the project. Indicator Baseline Current End Target Indicator Name Value Value Value Assist states in implementing unified pension management agencies IT hardware packages installed in 20 states have received and for all public pension systems in accordance with recent legislation. states to accommodate cadastres installed equipment packages and Date and run SIPREV. Complete study are using SIPREV, Study of UPA models 27-Apr-2011 disseminated/debated; workshops; Type Unit of Measure Comment steps taken to implement Public Disclosure Copy Date Custom Indicator Text 10-Jan-2007 Contract was financed with 100% Date government counterpart funds due 30-Jun-2011 Comment to procurement rule limitations. Comment Page 3 of 5 The World Bank Report No: ISR3212 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Strengthen institutional capacity in the Ministry of Social Security and Workshop done and CONAPREV Training and workshops carried out states through training, publications and work shops launched under PARSEP project. in 20 states, MPS publication Date Date seriescontinued, 2 diagnostics 27-Apr-2011 (linking disability and health Type Unit of Measure 10-Jan-2007 Comment insurance with the RPPS) Custom Indicator Text Comment Contract financed with 100% completed, 8 CONAPREV government counterpart funds due workshops carried out to faulty procurement process in Date 2009. 30-Jun-2011 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Strengthen reform constituencies in the States through state sponsored State workshops done under Workshops carried out in 20 stakeholder workshops PARSEP States. Date Date 27-Apr-2011 Date Type Unit of Measure 10-Jan-2007 Comment 30-Jun-2011 Custom Indicator Text Comment Borrower requested the elimination Comment of this indicator. Data on Financial Performance (as of 25-Feb-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P089793 IBRD-74280 Effective 13-Feb-2007 17-Jul-2008 07-Oct-2008 30-Jun-2011 Public Disclosure Copy Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P089793 IBRD-74280 Effective USD 5.00 5.00 0.00 3.09 1.91 62.00 Disbursement Graph Page 4 of 5 The World Bank Report No: ISR3212 Public Disclosure Copy Key Decisions Regarding Implementation The client made significant progress in disbursements in the period January-March 2011 and requested a project restructuring to the Bank including the extension of the closing date. Upon the Borrower's request, the Bank agreed to explore restructuring the project including the extension of the closing date to December 31, 2011. Restructuring History Level two Approved on 20-Jan-2011 Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5