Private sector pension scheme - a blessing for employees - Leslie Devendra

by L.S. Ananda WEDAARACHCHI

The working class should be grateful to President Mahinda Rajapaksa for introducing the much awaited Private Sector Pension Scheme, said Sri Lanka Nidahas Sevaka Sangamaya - SLNSS - Secretary General Leslie Devendra.

He said that employees in the private sector face a serious situation after retirement, since they have no income of their own for sustenance.

SLNSS - SG Leslie Devendra.

The Employment Provident Fund - EPF or Employees Trust Fund - ETF monies which they receive after retirement is insufficient to put up a house or settle an outstanding loan. It is of course a tragedy that they do not have any stable source of income despite years of employment, he said.

Leslie Devendra, a veteran trade unionist who holds an LLB Degree has also obtained Diplomas in special labour development and trade union affairs from Sweden, Italy and the United Kingdom.

He said that government servants are entitled to better salary scales, facilities and a pension as well. They are safe and secure in their retirement while the private sector including State Corporation employees are ill-equipped to face post retirement livelihood challenges.

"This situation is bound to deteriorate with the passage of time. Sri Lanka's older population is increasing sharply and it will be 25 percent of the total population by 2020. After another five years it will increase to 30 percent of the population. We should keep in mind that these retired employees will have to look after themselves apart from their families. Their school going children is an another burden. How can they look after themselves without earning a single cent after retirement? Therefore President Mahinda Rajapaksa took a humane and timely decision in the interest of the working class in the country", he said.

Devendra said that most of the children do not look after their elderly parents in today's social and economic environment. It is obligatory on the part of the authorities to ensure a good future for non-public sector workers after retirement as they have contributed much in their robust days. He said that trade unions affiliated to the Opposition had alleged that the proposed Employees Pension Benefit Fund - EPBF will interfere with the EPF and ETF Funds which will eventually deny the benefits occurred to them.

This is wrong, we have studied it. It is an independent scheme, he said.

Far from delaying such a progressive measure we should expedite its implementation. We should embrace this opportunity initiated by President Mahinda Rajapaksa in the interest of the working class. For more than a decade, we discussed the need for a pension scheme for the private sector and government corporation employees. We should not delay its implementation at all, he said. President Mahinda Rajapaksa had agreed to introduce a sustainable pension scheme for the private sector which is another pledge in the Mahinda Chinthana future vision program. It would benefit not only private sector employees in Sri Lanka but also expatriate Sri Lankans and the self-employed, he said.

Devendra said as a responsible trade union federation, we have pointed out a few weak points in the bill and made several suggestions to correct those weaknesses. The provision in the bill that a retired employee would be eligible to draw this pension only at 60 after he/she had retired at 55 or 50, should be changed, he said. Devendra said that the stipulated ten-year period to draw retirement benefits by the spouse is not a desirable feature. If a member dies before the stipulated period his or her spouse will not receive the retirement benefits according to the bill. This section also needs reconsideration, he said.

Meanwhile, the Employers Federation of Ceylon EFC, Director General Ravi Peiris said that the EFC will not oppose the concept of a pension for the private sector. The EFC always appreciates what is beneficial to employees but there are many complex issues that have to be resolved - through consultation. He emphasized there was no such consultation among relevant stakeholders prior to the introduction of the bill, he said. Peiris thanked the President for giving them an opportunity to discuss, as the issues have far-reaching implications. The President immediately instructed the Labour Ministry and the Finance Ministry to arrange a meeting with the stakeholders to discuss outstanding issues pertaining to the Bill and reach agreement, he said.