You are here: Policy Commission Circulars Circulars Published in 1999 - [745 - 757] Commission Circular No: 747

University Grants Commission - Sri Lanka

Commission Circular No: 747

10th June, 1999.

 

 

Vice-Chancellors of Universities,
Rectors of Campuses,
Directors of Institutes.

 

PENSION SCHEME FOR THE EMPLOYEES OF THE UNIVERSITY SYSTEM

The Cabinet at the meeting held on 24th March, 1999 approved the establishment of a Pension Scheme for permanent employees of the University System. Accordingly steps have been taken to establish a Pension Scheme for the employees of the University System with effect from 1st September 1999.



1. Eligibility

All permanent employees who are in service currently may opt to become a member of the Pension Scheme while membership will be compulsory for new employees who join the University service from 1st September, 1999.



2. Age of Retirement

The age of retirement for Academic staff is 65 years and for Non-Academic staff 55 or 60 years or in between after extensions.



3. Salary for the Calculation of Pension

The calculation of Pension is based on the last drawn salary & allowances which are being used for the calculation of the contribution to the Provident Fund.



4. Benefits.

4.1 On Retirement
4.1.1. Employees who have served 20 years or more and served till this age of retirement as indicated in para 2 above will be paid a monthly pension for life. The pension will be calculated as follows:
Age of Retirement
% of the Last Drawn Monthly Salary for Each year of Service
55 1.0%
60 1.2%
65 1.4%
Non Academic employees who could retire at the age of 55 but opt to Continue to work till 60 years or retire in between will be paid on pro- rata basis.
4.1.2 On death of a pensioner 50% of the pension will be paid to the widow/widower and 50% will be equally divided and paid to the children until they reach 18 years of age.
4.1.3 The amount and interest lying to the credit of an employee who has not completed 20 years of serice will be refunded at the point of retirement.
4.2 Retirement on ill health
4.2.1 Employees who have served 20 years or more and retire due to ill health before the age of retirement, will be paid a monthly pension for life. Pension will be calculated according to para 4.1.1.
4.2.2 On death of such a pensioner, pension will be paid to his dependents as indicated in para 4.1.2.
4.2.3 The amount and interest lying to the credit of an employee who retired prior to 20 years of service due to ill health will be refunded.
4.3 On death of employee while in service
4.3.1 Dependents of an employee who have served 20 years or more at the time of death will be paid a pension as indicated in para 4.1
4.3.2 In the case of a bachelor/spinster or in the event of the death of an employee without completing 20 years of service the amount and interest lying to his credit will be paid to his next -of- kin.
4.4 On Resignation/Dismissal before age of retirement.

The amount and interest lying to the credit of the member will refunded.
5.Contribution to the Pension Scheme.
5.1 Contribution from the existing employees
5.1.1. The existing employees should transfer 40% of their outstanding Provident fund balance to the Pension fund. The interest lost by an employee due to provident fund loans will be considered for the calculations. Also sufficient balance should be available in the Provident fund to cover Provident fund loan and other loans already taken by an employee where provident fund has been kept as security. Those who do not have a sufficient balance as calculated above will be given an opportunity to join the Pension scheme until the end of year 2001. The initial contribution of 40% is meant to meet the past service liability, and an employee will become a member of the Pension Scheme only after making this initial contribution.
5.1.2 Upon becoming a member, 8% out of the 15% contributed by the employer to the Provident fund will be credited to the Pension Fund. This amount is meant to cover the future service period.
5 .1. 3 Employees who consent to join the Pension Scheme are not permitted to change their decision at a later date and request membership only in the Provident fund
5.2 Employees who join the University System after 1st Septemper 1999.
All new employees who are appointed to a permanent post in the University System will be members of the Pension Fund. 8% out of the 15% contributed by the employer to the Provident Fund will be credited to the pension fund as indicated in para 5.1.2.
5.3 Employees who retire from the universities service prior to 1st Septemper,1999.

Employees who will be retiring from the University service during June to August 1999. and those who have not withdrawn their Provident fund are permitted to obtain membership of the Pension Scheme on conditions indicated in para 4.1.4 and 5.1.1. and on written request.
5.4 No pay leave or non-receipt of monthly contributions to the pension fund

As indicated before, an members of the Pension Fund.should contribute 8% of the Salary to the Pension Fund. Due to no pay leave or any other reasons, if contributions are not received for a period, such period will be reduced from the total service period for the calculation of the pension payable.

The above Pension Scheme will be reviewed once in every three years and the benefits available to contributions of new employees will be suitably amended following such review.

Please inform the contents of this circular to the employees of your Institution and take action to forward the duly perfected attached format on or before 31st July, 1999 to this office.

 

(Prof. S. Tilakaratna- Chairman )

Cc:

  • Chairman/UGC
  • Vice-Chairman/UGC
  • Members of the UGC
  • Secretary/UGC
  • Deans of Flculties
  • Registrars of Universites
  • Financial Controller/UGC
  • Bursars of Universities
  • Librarians/SAL/AL of t he Higher Educational Institutions / Institutes ;
  • Snr. Asst.Registrars/Asst.Registrars of HEIs/Campuses
  • Snr. Asst.Bursars/Asat.Bursars of HEIs/Campuses
  • Chief Internal Auditor/UGC
  • Govt. Audit Superintendents of Universities
  • Snr Asst.Int.Auditors/Asst.Int.Auditors of HEIs
  • Secretaries of Trade Unions
  • Auditor-General

 

 

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