By Sanath Nanayakkare-May 15, 2014, 12:00 pm
'About 70% of government servants vote for the government, but the government has hit them below the belt by tampering with their pension benefits, Transparency International Sri Lanka Executive Director S.Ranugge said during a panel discussion titled 'Pension-What Next?', held at the auditorium of the Organization of Professional Associations of Sri Lanka last Tuesday.
"Pension benefits are the only means government employees have to depend on after retirement. For authorities it’s a gratuity, but for pensioners it’s life. What is the point of government authorities telling pensioners to get their pension gratuity as loans from the banks? The government should directly obtain loans from the banks without asking us to do so".
"There are 1.1 million government servants in service at present. There are about 300 state sector trade unions in the country. Are they awake to these realities? Do they at least know that their life after retirement is at risk just like the ones who have retired? Today’s society is surprisingly ‘anaesthetized’ to these harsh realities, so right-thinking people should be able to bring the people together to mount pressure on the government to win their inalienable rights." Ranugge said.
Ravaya editor K.W. Janaranjana who was the moderator of the event said, "Clearly, there is a crisis as government employees’ pension fund is in chaos, and at the same time private sector EPF funds are involved in transactions at the Stock Exchange producing harmful effects in terms of expected returns.
"Not only are the pension gratuity payments chaotic, but also there are discrepancies in the gratuity payment structure. The government’s 2012 budget pledged to address this issue, but no action has yet been taken. Citizens of the country should be able to put together a broader public forum to correctly understand these issues, and build an influential movement to push the government to address them fairly and squarely."
JVP Provincial Councillor Wasantha Samarasinghe speaking on the occasion said:'The government has made arrangements to pay government employees' gratuity in two ways when they retire from service. They say that pensioners can obtain their gratuity from the Pensions Department or through state banks as loans, subject to various conditions. This two-way pension gratuity payment is a violation of rights. How can they issue circulars like that without amending the Pensions Act?"
"The government doesn’t have Rs.12,000 million to pay annual pensions, but it can bear the annual loss of Rs. 16,000 million incurred by SriLankan Airways. Also, mammoth funds are spent on Mihin Lanka which is a loss making venture. On top of that is the enormous expenditure lavishly spent on ‘Deyata Kirula", but funnily enough they don’t have money to pay pension payments. The government which is in a massive fiscal crisis has no other alternative than cutting back people’s welfare." he said.
Joseph Stalin, secretary, Ceylon Teachers Union said: "The government has set its sights on fixed funds to plunder them, so it is introducing various methods to achieve that ulterior motive."
UNP parliamentarian Dr. Harsha de Silva said: "I think all has already been said about the pension issue. So I would like to draw your attention to EPF investments on the Colombo Stock Exchange".
"This fund has 2.5 million people’s lifetime investments. Three or four people are managing, controlling and handling it as they deem fit. I strongly urge the government to appoint several employees from the public sector and the private sector to monitor the operations of the Pension Fund and the EPF respectively. This is very pertinent as the Central Bank hasn’t published accounts related to EPF investments from 2010 to date, and the pension fund has not been audited according to accepted standards."