Proposed private sector pension scheme :
Treasury Secy debunks critics
by L.S. Ananda WEDAARACHCHI
The proposed private sector pension scheme has been devised to ensure
the well-being of employees during their retirement. It will provide an
adequate income for them said, Treasury Secretary Dr. P.B. Jayasundera.
There is no truth whatever in the allegations made by some critics that
the proposed private sector pension scheme interferes in the Employees’
Trust Fund (ETF) and Employees Provident Fund (EPF).
The government will not touch the ETF and EPF while giving effect to
the proposed private sector pension scheme, he said. The pension scheme
will be implemented with the setting up of a separate, independent fund.
‘An employee should contribute two percent while the employer should
equal the same amount, he said dispelling doubts entertained by the
public.
Dr. Jayasundera who participated in a SLBC radio discussion said that
an employee should work at least 10 years in the private sector to be
entitled to the proposed pension scheme. They will be eligible to draw
their pension when they turn 60, he said. President Mahinda Rajapaksa
told trade union leaders at Temple Trees recently that the shortcomings
of the proposed pension scheme, if any, would be rectified.
The long-awaited pension benefits for the private sector should not
be thwarted to gain political mileage or achieve private agendas, he
said.
The retirement age of employees in State enterprises has been
increased to 57 from 55, the Treasury Secretary said.
He said that the employees in State enterprises could serve until 57
without extensions of service.
The Board of Management of such bodies has the authority to permit
employees to serve until 60 at their choice, he said.
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