Pension scheme for private sector

A pension scheme for private sector employees is, on the face of it, a laudable measure and needs to be warmly welcomed. The prime reason for this is the inability of many private sector personnel to cope with living costs and kindred difficulties once they retire from service. Therefore, a pension payment would be hugely welcomed by most of these retired employees in the evening of their lives.

The pension scheme has had the endorsement of a number of trade unions and this is a pointer to the wide acceptance of the scheme among the generality of the local public. President Mahinda Rajapaksa has taken the judicious step of conducting comprehensive and wide-ranging consultations on the scheme and the task before the state would be to take into consideration all valid views before completely formulating and implementing the pension scheme. In other words, the views of all relevant parties must be strongly considered.

However, the scheme has got a shot in the arm in the form of the statement by the Employers' Federation of Ceylon Director General Ravi Peiris that his organization would not oppose the concept of a private pension, although consultations among all stakeholders need to continue in view of the complex nature of some of the issues relating to the relevant Bill.

This is a sensible approach to the Bill and it goes without saying that a consensus on the scheme is the ideal. We urge all relevant parties to continue with their consultations with a view to arriving at this consensus, because the scheme should be a fool-proof one which should not turn out to be an unfeasible proposition later on.

Nevertheless, there could be no denying that the pension Bill is an intrinsically good one and needs to be looked upon favourably. This is on account of the relief it potentially offers to all private sector employees who, thus far, have had to fall back on only their EPF and ETF end- of- employment payments, as security against a usually uncertain economic future.

The vastly increasing number of elders in our population, makes the need for a pension of some sort very urgent.

It is now widely accepted that EPF and ETF payments, although very welcome, do not prove very adequate in the facing of rising living costs. If a pensioner who is burdened with financial commitments of a major kind, is compelled to use up these monies, he may very well face a bleak financial future, but if he has the comfort of knowing that a pension of some sort is awaiting him, he could face the future with greater confidence.

Therefore, concerns of a humanitarian nature chiefly underpin the advisability of launching a private sector pension scheme.

No doubt, employees may be compelled to make a further financial sacrifice at the end of every month for the purpose of entitling themselves to this pension, but considering the potential financial relief the scheme could bring private sector employees, we believe the project should be given a try. However, as pointed out, the 'nuts and bolts' of the scheme should be further discussed and ironed out.

While constructive criticism of the proposed pension scheme should be welcomed, we believe that those making pronouncements on this issue should refrain from engaging in destructive, self-serving comments which would not help in qualitatively advancing the discussion process. The need to garner narrow political gain in particular should be eschewed.

On close examination it could be found that the proposed scheme really serves a long felt need. It is the bounden duty of the state to protect all its citizens against economic uncertainties and the relevant scheme could adequately serve this purpose if carried out in good faith. The state could do with some critical but well meaning input from sections of the public on the scheme and we believe the common good would be served through an exercise of this kind. Therefore, a meeting of minds is the ideal and we call on all sections to make this possible.

Some of the issues raised in connection with the pension, we hope, would impress on all the need to speed ahead with the development process.

For, it is economic advancement for all which would enhance the financial affordability of a private pension scheme. Sri Lanka has reached Middle Income Country status but we need to forge ahead to reach further economic heights.