Paid Pensions

The new contributory pension fund for public servants has not got parliamentary approval as unions opposing the deal have sought legal action.
The present Employees Provident Fund Act will be amended to include the new Public Service Provident Fund.rn

rnThe new pension scheme will kick in from January 1, 2003, with new recruits to the public cadre contributing eight percent of their salaries and the government forking the balance 12 percent. rn

rnThe government plans to add around 3,000 new faces to bloated public service this year. rn

rnThe new fund will be a government controlled savings scheme modelled on similar lines like the present EPF and Employees Trust Fund. rn

rnThe Monetary Board of the Central Bank will takeover the management of the new scheme, with the EPF chipping in as administrators.rn

rnInterest rates will be paid on members year-end balances.rn

rnIf an employee puts in 30 years or more of service, he is entitled to 70 percent of the last drawn salary as his pension.rn