Parliament on Wednesday passed amendments to the state pension funds, paving the way for a new contributory style retirement scheme for public sector employees.
The Employees Provident Fund Act was amended to allow a new pension scheme for public sector employees to start off from January 1.rn
rnUnder the amendments, new recruits to the public cadre will put in eight percent of their salaries and the government chips in with the balance 12 percent. rn
rnManaged by the EPF Dept. for an initial two-years, the new fund will be a government controlled savings scheme modelled on similar lines like the present EPF and Employees Trust Fund. rn
rnThe government currently runs several mandatory pension schemes such as the Public Service Pension Scheme (PSPS), Widows & Orphans Pension Scheme, EPF, ETF, Public Service Provident Fund and all Approved Private Provident Funds.rn
rnSri Lanka currently has a pay as you go pension scheme for its public servants, with the present 300,000 pensioners costing the g