Tuesday, 04 May 2021 10:08

Private sector pension scheme comes to fore once again Featured

The present government is making another attempt introduce a private sector contributory pension scheme bringing the Employees Provident Fund (EPF) and Employees Trust Fund (ETF) under the treasury to prevent the misusing of funds, Lbaour Ministry source said.

 

The EPF or ETF in its current form cannot be considered a pension scheme. Therefore, if both funds are going to be merged to provide a pension for life, the fund needs major reform and must be taken out from the Central Bank..

In Sri Lanka, 85 percent of the population between the ages of 20 and 59 are not covered by a pension scheme, and only 30 percent of the population above the age of 60 gets a pension that helps them to make ends meet.

Any new Pension scheme must be contributory and sustainable as the public sector pension system is mostly unfunded, officials said.

There are 24 income support schemes, which include the state’s Public Service Pension Scheme (PSPS) and the private sector’s Employee Provident Fund (EPF).

There are also contributory pension schemes for the informal sector workers, which include the Farmers Pension and Social Security Benefit Scheme (FMPS), Fishermen’s Pension and Social Security Benefit Scheme (FSHPS) and the Self-employed Persons Pension Scheme (SPPS).

Other than for these there is a Public Assistance Monthly Allowance (PAMA), which provides an allowance to households whose monthly income falls below a minimum amount

The attention of the government has been drawn to introduce a pension scheme and a Social Security Fund for the private sector employees, Labour Minister Nimal Siripala De Silva said.

The Ministry has also determined to depoliticise trade unions and make the private and public sector working class the backbone of the national economy under any government, Minister De Silva added.

 

 

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