Cabinet nod for the establishment of National Contributory Pension Fund

The Cabinet of Ministers on Monday (27) approved the proposal furnished by the  President to direct the Legal Draftsman to prepare a draft bill to establish a fund named National Contributory Pension Fund  to ensure an appropriate environment for state sector employees to spend their retired life without being a burden to the country as well as to provide a pension with a certain profit.

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. An independent entity governed by a board of management to manage the proposed contributory pension fund will be established 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. Whereas, those recruited to government service after the month of January 2016 can contribute to the proposed national contributory pension scheme as per their consent.