Sri Lanka's Pension Reform: A Blueprint for Social Justice 📈

A new policy perspective highlights the shift from political pension debates to a sustainable national framework. The proposal emphasizes a transition from discretionary benefits to a structured, two-pillar system to ensure long-term fiscal stability. • Core Framework: Proposed dual-structure: 1. State Pension: A contributory fund based on National Insurance, replacing the current tax-funded burden. 2. Employment-Based Pension: Strengthening existing models like the EPF (20% total contribution) with tax-incentivized voluntary schemes. • Key Economic Proposals: Retirement Age: Uniform eligibility at 65 years for both genders to ensure fund sustainability. Caregiver Recognition: Credits for up to 16 years of unpaid childcare, recognizing parenting as a national service. Integration: Merging Aswesuma, Samurdhi, and elderly allowances into a unified, actuarially-sound national system. • Governance & Equity: Legislative Reform: Eliminating disproportionate pensions for politicians with minimal service years. Sector Specifics: Specialized schemes for healthcare, police, and armed forces to remain transparent and proportionate to service. Sustainability: Moving away from politically motivated handouts toward rational, data-driven social safety nets.