Cabinet decision to establish ‘National Contributory Pension Fund’

• NCPF will  cover pension costs of employees who will join the public service in future

By Sandun A. Jayasekera

The cabinet that met on Monday has decided to establish a ‘National Contributory Pension Fund’ (NCPF) to cover pension costs of employees who will join the public service in future, Cabinet Spokesman, Minister Dr. Bandula Gunawardana said.  

Accordingly, 8% from the basic salary of the employee and 12% from the employer should be credited to the proposed fund when a state employee is recruited in the state service.    

“The government has suspended new recruitments to the public service and the newly recruited public servants will come under the NCPF,” Minister Dr. Gunawardana told the weekly post cabinet news briefing yesterday. 

It has been recognized appropriate to establish a fund named National Contributory Pension Fund to ensure an appropriate environment to spend their pension life without being a burden to the country as well as to provide a pension with a certain profit for the pension life of the state sector pensioners.   An independent establishment governed by the management board to manage the proposed contributory pension fund will be initiated and a fund manager with special skills will be appointed for management of the funds.   
The proposed national contributory pension scheme will be applicable to the individuals newly recruited to the government service.