It has been recognized that is appropriate to establish a fund named National Contributory Pension Fund to ensure an appropriate environment to spend their retired life without being a burden to the country as well as to provide a pension with a certain profit for the retired life of the state sector pensioners. Accordingly, 8% from the basic salary of the employee and 12% from the employer should be credited to the proposed fund when a state employee is recruited in the state service. An independent

entity governed by a board of management to manage the proposed contributory pension fund will be established and a fund manager with special skills will be appointed for management of the funds. The proposed national contributory pension scheme will be applicable to the individuals newly recruited to the government service. Whereas, those recruited to government service after the month of January 2016 can contribute to the proposed national contributory pension scheme as per their consent. Accordingly, the Cabinet of Ministers approved the proposal furnished by the Hon. President to direct the Legal Draftsman to prepare a draft bill so that required provisions can be made available.

Decisions taken by the Cabinet of Ministers on 27.02.2023