Sri Lankan President to meet trade union representatives over private sector pension scheme

Apr 25, Colombo: Sri Lankan President Mahinda Rajapaksa is to meet with trade union representatives today for a discussion on the proposed private sector pension scheme.

The meeting is to take place at Temple Trees with the members of the National Labor Advisory Council and the President expects to resolve the crisis with the trade unions at today’s discussion.

Private sector trade unions have objected to the proposed pension scheme over several issues.

Key among them is the fact that it is a contributory scheme where monies from other funds will also be drawn for and the low benefits for members of the fund.

Many private sector trade unions have organized protest campaigns this week against the proposed pension scheme.

According to the private sector trade unions, the proposed pension scheme for the private sector was unacceptable since it is a contributory fund that would last only until monies last in the personal accounts of the fund’s members.

Trade unions say the proposed pension scheme is an attempt by the government to swindle monies from the other funds like the EPF, ETF, and the scheme would not benefit the private sector employees.

The government had proposed to set up three separate Contributory Pension Funds from May 01, 2011 for the private sector, the expatriate workers and for the self-employed.

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