The Cabinet of ministers had approved a proposal by President Ranil Wickremesinghe to establish a national contributory pension fund for government servants, Cabinet spokesman Bandula Gunawardena told reporters on yesterday.
Addressing the weekly post-Cabinet press conference, Gunawardena said all new recruits to the government sector would come under the new pension scheme, which would reduce the burden on the state to pay pensions to state employees.
“We want the government servants to enjoy a comfortable retirement. Eight percent from the basic salary of the employee and twelve percent from the employer will be credited to the proposed fund when a state employee is recruited. An independent entity will manage the proposed contributory pension fund and an experienced fund manager will be appointed for its management,” Minister Gunawardena said.
“Those recruited to government service after January 2016 can also contribute to the proposed national contributory pension scheme with their consent. The President will direct the Legal Draftsman to prepare a draft bill,” he said. (RK)