A Jagath D Dias

Director General of Pensions

Department of Pensions
Ministry of Public Administration & Management Sri Lanka
1 5 August 2016.
Asia-Pacific Social Protection Week
Asian Development Bank, Manila, Philippines.
DISCLAIMER: This presentation does not necessarily reflect the views of ADB or the Government concerned, and ADB and
the Government cannot be held liable for its contents.

Pension Coverage in Sri Lanka

Central Government Officers Pensions

Government
Sector

rovincial & Local Government Officers Pensions

P
Judicial service Officers Pensions
Armed Services Pensions.

Widows, Widowers and Orphans Pensions

Private School and Piriven Teacher's Pensions

Public Service Provident Fund

Pensions for Parliamentarians

Pensions for private staff to the Govt. Ministers Ta
Schedule.

Bankers Pension Scheme (Including State Bank)

Private Sector

Informal Sector

mployees Provident Fund, Employees Trust Fund and other

E
Social Insurance Scheme
Farmers/ Fishermen's, Migrant workers and Self Employed

Pension Scheme

Pension Coverage
Contributory Pensions
Widows , Widowers & Orphans
pensions.
Public Service Provident Fund.
Private Sector Funds (EPF, ETF &
Bank officers etc.).
Informal Sector Pension Schemes.
Non Contributory Pensions
Government sector Civil, Armed
Services and other pensions.

Eligibility & Entitlement for Pension

Permanent & Pensionable Officers in
Public service
Optional retirement 55 age
Compulsory retirement 60 age
*85% -75% & 90% - 85% Depend on
basic salary and service period. Basic
pen. + COL

Armed Services
Compulsory retirement 20/22 years
service or *55 age or completion of
service period.(rank) 55% - 85% & 60% 88% Basic pen + COL +GCA
Widows & Widowers Pension
Death of Spouse * Basic Pen + COL
Widows & Widowers Orphans/ Disable
Pension
Death of Parents * Basic Pen + COL
Judicial Services
Higher Courts & Other judicial Officers
55age to 65 age *75% - 90% Basic pen +
COL
Public Service Provident Fund
Non Pensionable Officers
Payment of Benefits
*Member Con + Govt. Con + Interest
GCA - Good Conduct Allowance
COL - Cost of Living Allowance
*Subject to certain condition

Legal Coverage for Public Sector

1890 : Widows & Orphans Pensions Ordinance and Amendment Acts.
1910 : Public and Judicial officials (Pension) Ordinance and Amendment Acts.
1934 : Minutes of Pensions and Amendments.
1942 : Public Service Provident Fund Ordinance And Amendment Acts.
1953 : Private School and Piriven Teachers Pension Act and Amendment Acts.
1970 : Widows and Orphans (Armed service) Act and Amendment Acts.
1974 : Local Government Service Pensions Act.
1977 : Parliamentarians Pensions Act
1981 : Minutes of the Armed Service Pensions and Gratuities & Amendments.
1983 : Widowers and Orphans Pensions Act and Amendment Acts.
1998 : Widowers and Orphans (Armed Service) Pensions Act & Amendment Acts.
Establishment Code and Financial Regulations in DSR of Sri Lanka.

Legal Coverage for Private & Informal Sector

1958 : Employees Provident Fund Act and Amendment Acts.
1980 : Employee Trust Fund Act and Amendment Acts.
1987 : Farmers Pension and Social Security Benefit Act and Amendment Acts.
1990 : Fishermens Pension and Social Security Benefit Act And Amendment Acts.
1996 : Social Benefit Board Act and Amendment Acts.
Approved Private Provident Fund under the purview of Commissioner General of Labor.

Benefits under the current pension system(Public Sector)

One time Payments (Civil & Armed Services)
Commuted Pensions Gratuity
Death Gratuity
Service Gratuity
Daily Service Gratuity
Special Compensation
Exgratia Payment
Charitable Allowance
Monthly Benefits (Civil & Armed Services)
Civil Pension
Service Pension
Widows Pension
Widowers Pension
Widows/Widowers Orphans pension
Widows/Widowers Disable pension
Armed Services Dependent Allowance
Police & Armed Services Disable Pension
Civil Compensation Pension
Good Conduct Allowance (Police & Armed Services)

Annual Government Cost of Pensions

2010

2011

2012

2013

2014

2015

Rs.
(Billions)

Rs.
(Billions)

Rs.
(Billions)

Rs.
(Billions)

Rs.
(Billions)

Rs.
(Billions)

Civil
Pensions

73.2

80.3

90.5

104.0

117.9

129.7

W&OP
Payment

17.6

18.6

20.1

18.6

18.8

35.2

Death &
Disable
Payment

10.5

13.3

14.7

16.1

18.2

23.4

101.3

112.2

125.3

138.7

154.8

188.3

Item

Total

Annual Government Cost of PSP Fund, Parliamentarian,

Farmers & Fishermens Pension Schemes
Item/Year

Type

2014

2015

Govt. Contributions
Rs. Mn.

PSPF

747

2,029

No of Contributors

PSPF

230,837

232,606

No of Contributors

Farmers

959,254

959,254

Fishermen's

68,738

68,740

Farmers

123,768

136,421

Fishermen's

2,913

3,322

Farmers

2,130

2,381

43

46

No of Parliamentarians

470

470

Cost Rs. Mn.

168

180

No of Pensioners

Payments Rs. Mn

Fishermen's

Government Cost for Pensions 2016

DoP Average Monthly Pension (570,000 Pensioners) and

Gratuity (2,500 Pensioners) Bill Rs. : 16 billion

DoP Annual Pension Bill Rs.(Estimated): 200 Billion
Percentage of Basic pension (per month) 72%
Percentage of Allowance (per month) 28%
Pension cost on Informal sector Rs. (Esd) : 2.9 Billion
Share of GDP : 1.80%
No of people are eligible of pension scheme 5 million
1.4 Million Public Sector Employees are effectively covered by a
pension scheme.
Old age dependency ratio 15% in 2015, 17 % 2020 (Esd.)
Collection of W&OP Fund contribution Rs.(Esd.) : 16.5 Billion
PSP Fund Compulsory Contribution from members
Rs.(Esd.) : 850 Million.

Proposals
Simplifying the present pension system.
Minimize the government burden on pension.
Introduce pension for all concept and welfare

management system.
Establish self managed contributory pension fund
and governing body to manage the pension fund.
Minimize sustainability issues in informal sector
pension schemes.

Thank You