The Cabinet of Ministers has approved the proposal presented by the President to instruct a draftsman to prepare a bill to establish a fund called the National Contributory Pension Fund.
It has been recognized that it is desirable to establish a fund called the National Contributory Pension Fund to provide a pension with some benefit to the pensioners of public service for their retirement and to ensure a suitable environment for the pensioner to spend his retirement without being a burden to the country.
Accordingly, after joining the government service, a government employee has to credit 8% of his basic salary and 12% as the employer’s contribution to the proposed fund every month.
An independent body governed by the Board of Management will be set up to manage the proposed Contributory Pension Fund and a specially qualified fund manager will be appointed to manage the funds.
The proposed National Contributory Pension scheme will be applicable to newly recruited government employees.
Also, employees recruited into the public service after January 2016 will be able to opt-in to the proposed National Contributory Pension Scheme as their letters of appointment provide that they will be subject to a pension scheme decided by the government.
