Pension Doubts

June 01, 2011 (LBO) – Sri Lanka’s main opposition has cast doubts on claims that a lifetime pension exceeding the contributed balance, will be paid through a controversial proposed pension plan for private citizens. “There is no way that the Government can make lifetime monthly pension payments via the proposed Private Sector Pension Scheme,” opposition parliamentarian and economist Harsha de Silva said in a statement.

“This is an absolute falsehood.”

De Silva charged that Sri Lanka’s minister of labour said in a TV broadcast that individual pension payments will not be limited to the contributed balances of members and payments will be continued through their entire lifetime.

De Silva represents Sri Lanka’s main opposition United National Party.

“The UNP wishes to remind the Minister and the Government that misleading the public in this manner is not acceptable,” he said.

“The Governments is fully aware that it is unable to meet this commitment.”

In order to top up any defined benefits, the state will have to charge more taxes from the entire population.

The state has unveiled plans to deduct a 4.0 percent from worker wages on top of a 23 percent that is already deducted from