Budget 2019: Rs 12 billion to rectify pension anomalies

An extra allocation of Rs 12 billion has been allotted to rectify the anomalies existing in pension salaries, Minister of Finance Mangala Samaraweera stated presenting, the Budget proposal 2019 to the House this evening (05).

The Minister said that there are around 560,000 pensioners, who have retired before 31st December 2015 and whose pensions are calculated based on the Public Administration Circular No. 06/2006. In addition, around 71,000 pensioners retired during the period of 1st January 2016 to 31st December 2018, and are drawing pensions based on their eligible basic salary at the time of retirement, based on the Public Administration Circular No. 03/2016.

Hence, there is a disparity of pensions drawn by the pensioners, who have retired before 1st January 2016 and the ones who were entitled to different phases of the salary increases given by the Public Administration Circular No. 03/2016.

Accordingly, the Minister proposed a pension revision, having incorporated the first 2 phases of the Public Administration Circular 03/2016 to the basic salary obtained by the pensioner, at the time of retirement with effect from 1st July 2019.

Minister Samaraweera said that around 585,000 affected pensioners will benefit from this pension revision.

A lower grade government employee’s pension will accordingly increase by at least Rs 1,600/- per month while a Grade I teacher will have an increase of Rs 4,600/= in the monthly pension. The pension of a Secretary to a Ministry will increase by Rs 12,000/- per month.

This is based on 25 years’ service and retirement prior to 31st December 2015, the Minister further said.