Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Box 3.8Proposed Foreign Employment Pension Benefits Fund(Bill Submitted to Parliament in April 2011 with Proposed Amendments)Salient Features• The objective of setting up this fund is to recognize the significant input made by citizens of Sri Lanka who areengaged in foreign employment, contributing to the economic wellbeing of the country, and to ensure that suchemployees will have a retirement benefit scheme, when they reach non-working age. Any Sri Lankan citizen inforeign employment, can opt to join this pension scheme.• The Government will provide Rs. 1000 million, by way of an initial capital to this Fund in the form of long termbond on the basis explained before. Further, all funds lying to the credit of the Foreign Employment Bureau as of30.04.2011 will be credited to this Fund. Contributions will be as follows;- Each employee is required to contribute a minimum amount of Rs. 12,000 per annum to this Fund.- Such contributions have to be made with regard to a minimum of two (2) years.- Such a contribution can be made in one or more installments, prior to reaching the age of 50 years in the caseof women and 55 years in the case of men.- The Pension will be paid upon a member reaching 60 years in the case of women and 65 years in the caseof men, throughout their lifetime.• The amount of the Pension will be worked out on the basis of the Employee’s balance in the individual account ofthe Fund.Box 3.9Proposed Self Employment Pension Benefits Fund(Bill Being Prepared)Salient Features• The objective of setting up this fund is to provide those who are engaged in self employment, to be able to optto a contributory Pension benefits fund so that they will have a retirement benefit scheme, when they reach nonworkingage.• The Government will provide Rs. 1000 million, by way of an initial capital to this Fund in the form of long termbonds.• Any person engaged in self employment seeking to be a member will have to contribute a minimum of Rs.10,000per annum to this Fund. The annual contribution could be made in one or more installments.• A minimum of a 10 year contribution has to be made, to be paid a pension at the age of 65 years.• In the event the member does not have 10 years within which to make such contributions before reaching theage of 65, the member could opt to make the payments pertaining to the period that is short, in one or morelump sum installments. However, such payment has to be completed by the member prior to receiving thePension.199