The Ministry of Social Empowerment is to submit a cabinet paper seeking the approval of Cabinet of Ministers to establish a new contributory pension scheme for those who are not employed in either government or private sectors, The Daily Morning learnt.
It is understood that the new scheme will be put to the Cabinet of Ministers after having consulted the Ministry of Finance and the Ministry of Public Administration. Speaking to the Daily Morning yesterday (28), the State Minister of Social Empowerment Anupa Pasqual said that the employees should contribute a certain amount of money in the first five years which is mandatory and they will get it as a pension after 60.
“According to a research conducted by the National Institute of Social Development (NISD), more than half of Samurdhi beneficiaries are elderly citizens who had worked for a daily wage. For example they had worked as carpenters, masons or had engaged in jobs overseas. So most of them are not able to work after 60 years. Even though government employees are benefited by a proper pension scheme while private sector employees are benefited by Employees’ Trust Fund (ETF) and Employees' Provident Fund (EPF), the above-mentioned groups are not benefited by any such welfare scheme. Therefore the President directed the Social Empowerment Ministry to look into the issue and to make a programme to facilitate them. Accordingly, this pension system will be executed by the Sri Lanka Social Security Board,” he said.
Pasqual further noted that the employees can contribute the prescribed amount even after the completion of the first five years if they wish and it will help them to get the amount of pension doubled. “If the employees wish to contribute for another five years after the completion of the first term, their pension will be doubled, and can get a thrice of the pension if they continue it for 15 years,” he said.
The State Minister also said that a cabinet paper seeking the approval for this proposal is to be submitted to the Cabinet of Ministers soon.
He added that, consultation regarding the scheme and the cabinet paper, with the Prime Minister and the Minister of Public Administration, Home Affairs, Provincial Councils and Local Government Dinesh Gunawardena and the State Minister of Finance Shehan Semasinghe was held yesterday evening (28).