Pension fund for migrant workers approved

• Rs. 2 b from Bureau of Foreign Employment to be used as initial capital

Government proposals to establish a pension fund for migrant workers was approved by Cabinet this week allowing for the extraction of Rs. 2 b from the Sri Lanka Bureau of Foreign Employment as the initial capital requirement.

The money is in the Kuwait Compensation fund of the Sri Lanka Bureau of Foreign Employment and would be reallocated through amending the bureau Act.  The Legal Draftsman is to draft the Act for the proposed pension scheme, which is to be implemented from 1 January 2017.

“As per the Cabinet decision in March a committee to appoint representatives from the foreign employment ministry, general Treasury, pension department, Central Bank and association of licensed foreign employment agencies to propose a pension scheme for migrant workers under the 100 days program of the Government,” the Cabinet paper said.

The funds from the Bureau of Foreign Employment would negate any need for allocations from the Finance Ministry, the Cabinet paper added.