|Thursday, 20 February 2003|
|Politics||Today's Top Story|
Unfunded pension liability stands at Rs. 550b - Choksy
by our Parliament correspondents
Finance Minister K. N. Choksy yesterday told Parliament that unfunded pension liability as it stands today was Rs. 550 billion.
The Minister presenting the Public Sector Pension Reforms Amendments to the EPF Act the Minister said with the expansion of the public service, the burden on the Government on pension payments has increased considerably, thereby crowding out the government's other essential expenditure requirements.
Making the winding up speech, he noted that Contributory Pension Scheme is an accepted system today. "Public servants' salaries will be adjusted to accommodate eight per cent contribution", he said.
According to the new reforms, the Government will contribute 12 per cent to the contributory pension scheme and public officers will required to contribute eight per cent from their salaries.
Choksy said an employee with 32 years service would be entitled to a pension of 70 per cent of the average salary of the three years preceding the date of retirement.
"For any period of service more than 32 years, it will be increased at the rate of one per cent for every six months, and for any period of services less than 32 years, it will be reduced at the same rate," he added.
Produced by Lake House