Civil Servants Pension Civil Servants Pension SchemeScheme

K.A. ThilakaratneK.A. ThilakaratneDirector General of PensionsDirector General of Pensions

Workshop on Social Workshop on Social Protection in Sri LankaProtection in Sri Lanka

Annual ExpenditureAnnual Expenditure

YearYear Pensions Pensions paymentspayments

(Rs. Billion)(Rs. Billion)

Pensions Pensions payments ( as payments ( as % ) of the Gov. % ) of the Gov.

RevenueRevenue

Pensions (as Pensions (as %)of G.D.P%)of G.D.P

20002000 20.320.3 9.189.18 1.51.5

20012001 25.825.8 10.2310.23 1.51.5

20022002 30.830.8 11.1111.11 1.81.8

20032003 31.031.0 10.3310.33 1.81.8

20042004 36.136.1 10.8710.87 1.81.8

20052005 47.047.0 11.4311.43 1.81.8

20062006 59.059.0Additional 4 Additional 4

(Total (Total 63)63)

11.5011.50 1.91.9

Major streams of the Public Major streams of the Public Sector Superannuation BenefitsSector Superannuation Benefits

•Civil Pension SchemeCivil Pension Scheme

•Widowers’ & Widows’ Pension Widowers’ & Widows’ Pension

SchemeScheme

•Public Service Provident FundPublic Service Provident Fund

Public Sector Superannuation Benefit Public Sector Superannuation Benefit SystemsSystems

Civil PensionWidowers & Widows

Pension SchemePublic Service Provident Fund Other Gratuities

Gratuity & Monthly Pension For:

a) Public events

b) Judicial Officers

c) Judges of the Supreme Court & Appeal Court.

d) Officers & Servicemen of Army, Navy & Air Force.

e) Provincial Public Servants.

Monthly Pension

For:

a) Widows

b) Widower’s

c) Orphans

d) Disabled Orphans

a) Lump Sum Payment for non Pensionable Public Servants

a) Death Gratuity

b) Gratuity for daily paid Employees

c) Compensatory Pension to dependants of the deceased Public Servants While on Duty.

d) Compensatory Pension to totally incapacitated Pub. Servants due to accidents occurred while on Duty.

e) Pension Gratuity to those who have not completed 120 months

Present System Benefits of Present System Benefits of Civil PensionsCivil Pensions

1 Monthly pension1 Monthly pension 2 Commuted Gratuity2 Commuted Gratuity 3 Death Gratuity3 Death Gratuity 4 Special Compensation4 Special Compensation 5 Compensatory Pension5 Compensatory Pension 6 Service Gratuity6 Service Gratuity 7 Daily Paid Service Gratuities7 Daily Paid Service Gratuities 8 Allowance on Compassionate 8 Allowance on Compassionate

GroundsGrounds 9 Injury allowances9 Injury allowances 10 Charitable Allowances10 Charitable Allowances

Armed Forces pensions Armed Forces pensions Present SystemPresent System

1 Service pensions1 Service pensions

2 Service Gratuity2 Service Gratuity

3 Special Compensation3 Special Compensation

4 Death Gratuity 4 Death Gratuity

Widows Widowers & Orphans Widows Widowers & Orphans Pension schemePension scheme

History & Legal Background:History & Legal Background:

a)a) Started in 1885 A.D.Started in 1885 A.D.

b)b) Widows & Orphans Pension Found Established Widows & Orphans Pension Found Established in 1898.in 1898.

c)c) Widowers & Orphans Pension Scheme Started Widowers & Orphans Pension Scheme Started in 1906.in 1906.

d)d) Armed Forces Pension Scheme Started in 1967.Armed Forces Pension Scheme Started in 1967.

e)e) Disabled Pension System Started in 1981.Disabled Pension System Started in 1981.

Contd.Contd.

EligibilityEligibility

a)a) Holder of a permanent Pensionable Post.Holder of a permanent Pensionable Post.

b)b) Valid marriage contracted during the Valid marriage contracted during the contributory period.contributory period.

c)c) Minimum period of service is not Minimum period of service is not required.required.

Contd.Contd.

Reasons to ApplyReasons to Apply

a) Death of the contributora) Death of the contributor..

BeneficiariesBeneficiaries

a) Spousea) Spouseb) Children up to 26 yearsb) Children up to 26 yearsc) Disabled Children – Life timec) Disabled Children – Life time

RefundsRefunds

a) Unmarrieda) Unmarried At retirement – Full Contribution + Compound interestAt retirement – Full Contribution + Compound interest

Amount PayableAmount Payable

Which is the Pension same amount to be paid if the contributor Retired of the date of death.Which is the Pension same amount to be paid if the contributor Retired of the date of death.

Contd.Contd.

FundingFundinga) Contributor System.a) Contributor System.

b) Employees Contribution.b) Employees Contribution.

6%-7% Of their Salary.6%-7% Of their Salary.

c)c) Employer does not contribute Employer does not contribute any any thing during the service.thing during the service.

d)d) Payment will be made on the Payment will be made on the allocation made by the allocation made by the

Annual Annual Budget. Budget.

End of PresentationEnd of Presentation

Thank YouThank You