Press briefing of Cabinet Decision taken on 2023-02-27

Establishment of National Contributory Pension Fund Bill

- It has been recognized that it would be appropriate to establish a fund called the National Contributory Pension Fund to provide a pension with some benefit to the pensioners of the Public service for their retirement life and to ensure a suitable environment for the pensioner to spend his retirement life without being a burden to the country. Accordingly, after joining the public service, 8% of the basic salary as a Government employee and 12%as the employer's contribution should be credited to the proposed fund monthly. An independent body governed by the Board of Management will be set up to manage the proposed Contributory Pension Fund and a Fund Manager with special qualifications will be appointed to manage the funds. The proposed National Contributory Pension Scheme will be applicable to the Government employees who will be recruited in future. Further, since the provisions to the effect that employees recruited to the public service after January, 2016 should be subject to a Pension Scheme determined by the Government, are included in their Letters of Appointment, they are also able to join the proposed National Contributory Pension Scheme at their discretion. Accordingly, theproposal made by the Hon. President to instruct a Legal Draftsman to prepare a Bill, enabling to make the necessary provisions, was approved by the Cabient.