May 27, Colombo: Treasury Secretary of Sri Lanka Dr. P.B. Jayasundara has said the proposed private sector pension scheme would benefit the employees and would also encourage them to work for longer periods.
Dr. Jayasundara has told the media that the Private Sector Employee Pension Fund is essentially the responsibility of the government.
The Commissioner General of Labour administers the fund while the Central Bank conducts financial management under the regulations of the monetary board, the Treasury Secretary said.
A tri-party consultative committee is to be established to direct how the Fund’s monies should be invested.
According to Dr. Jayasundara, the government invests a basic capital of one billion rupees for the fund. Two percent of the employee’s monthly salary is deducted while the employer contributes another two percent of the salary to the fund.
Dr. Jayasundara has noted that it would be made compulsory for all employees below the age of 50 to contribute to the Fund while those over 50 could do so voluntarily.
He has added that family members of a contributing employee would not receive any benefits if the contributing member was to pass away while contributing to the fund but had not completed the stipulated 10 years.
However, the Treasury Secretary has pointed out that the contributors to the fund would receive more than the benefit outlined by the government.
Dr. Jayasundara has observed that the scheme would generate an additional income through interests from government bonds.