NSB initiates pension scheme

Hiran H. Senewiratne

The majority of people in Sri Lanka do not have pension funds due to the absence of a proper pension instrument in the country, Governor of the Central Bank Ajith Nivard Cabraal said.

“Therefore our saving ratio is less than other countries in the world due to the absence of a proper instrument in the country” Cabraal said at the NSB Pension + loan scheme launch yesterday.

He said this type of a fund is necessary with the increase in life expectancy in the country. “We have to think of a pension system at a young age, with the increase in the aging population.

“Therefore, it is important for the Government to encourage banks and other financial institutes to introduce such schemes of this nature, he said. With these developments every individual will have to plan for a pension fund irrespective of his or her occupancy in the eve of one’s life.

Cabraal said despite challenges Sri Lanka’s development process will progress without any hindrance. Most of the major infrastructure projects will go ahead.

NSB Chairman Upali Gunaratne said this pension scheme is a 100 per cent government guaranteed one which is available to anybody. This scheme is a contributory scheme, which will enable a member to obtain financial remuneration upon retirement, cover for selected critical illnesses, hassle free housing loans and the opportunity to win valuable prizes.

Members of NSB Pension + will receive special benefits by way of a one to one match of the initial contribution up to Rs 1,000 with 50 per cent to the account and the balance in Ridee Rekha certificates, he said.

This scheme is so flexible that a member can contribute any amount at any time and any frequent from the age 16. Another advantage is that maturity can be deferred until a member turns 60 years.

“This is a first of its kind as it is the Bank’s endeavour to offer multi-faceted financial services at beneficial rates to Sri Lankans. This takes on from its position and the foremost savings institution in the country and proves beyond doubt its commitment to the people of this country,” he said.

According to NSB sources medical benefits are too good to be true. Up to a maximum of Rs one million can be obtained for selected critical illnesses once every five years with no prior medical test needed. No deduction from maturity benefits will be made.

NSB has played a pivotal role in the nation’s economy. The fact that 2006 ended with a profit of Rs 3.5 billion with 4,440 service points with its 15.6 million account holders bears testimony to this, Gunaratne said.