Cabinet nod to establish National Contributory Pension Fund

The Cabinet of Ministers has granted approval to establish a National Contributory Pension Fund for new public service employees and those who have joined the public service after January 2016, with an 8% contribution from the employee and 12% from the employer.

Joining the Cabinet press conference held this morning (Feb. 28), the Cabinet Spokesman, Minister Bandula Gunawardene stated that the government has recognized the fact it is desirable to establish a fund in order to provide a pension with certain benefits to the individuals who retire from the public service.

It will also ensure that the pensioner would be able to live on their own without being a burden to the government post-retirement, he said.

Accordingly, an independent body governed by a board of management will be set up to manage the proposed Contributory Pension Fund and a specially qualified fund manager will be in charge of the funds.

The proposed National Contributory Pension scheme will be applicable to newly recruited government employees as well as employees recruited into the public service after January 2016 since their letters of appointment provide that they will be entitled to a pension scheme decided by the government.

Thus, the Cabinet of Ministers has approved the proposal presented by the President to instruct the draftsman to prepare a bill to make necessary arrangements to establish the National Contributory Pension Fund.