NSB launches pension scheme

The National Savings Bank (NSB), the premier savings bank launched a pension scheme for people who don't draw a pension after retirement.

It is a financial first in the country.

Governor of the Central Bank Ajith Nivard Cabraal said that except for a minority of the working population who draw a pension the majority didn't have any savings after retirement and it was not only a problem for the individual but also for the country. This was a reason for the low savings ratio in the country.

General Manager and CEO of NSB S. H. Piyasiri said that the scheme named NSB Pension + is specially targeted at young persons.

The contributory pension scheme will enable a member to obtain financial remuneration upon retirement and any person between 16-55 can contribute to the scheme by investing Rs 1,000. Among the benefits of the scheme are medical insurance and a prize draw. The pension can be drawn either as a lumpsum or on a monthly basis.

NSB chairman Upali Gunaratne said the pension was the brainchild of Governor Cabraal who also named the bank's housing scheme which was in line with the Mahinda Chinthana economic framework of the government.

Gunaratne said the bank was also lending Rs. 2.5 billion for a housing scheme for the military, but it was given through the government and the bank itself was not at risk.

SG