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Teachers to take action on 'illegal' pension plan
The Sri Lanka Teachers' Union has threatened legal action within a week unless the Finance Ministry puts on hold the Contributory Pension Scheme (CPS), which has been implemented without former Speaker Joseph Michael Perera's certification.

According to the circular which sets out the scheme, public servants who joined the service on or after January 1, 2003 would contribute 8 percent of their salary, while the state would contribute 12 percent with the Treasury, the Central Bank and the Pensions Department maintaining the CPS.

The circular was issued by the Treasury during the last regime and many public servants including teachers have questioned its validity. It is believed the Speaker could not certify the Bill to implement the scheme as Parliament was dissolved.

"This scheme is illegal. Earlier there was no deduction from our salaries. Now 8 percent is deducted from our salaries but when we retire we get only 70 percent of our last salary drawn as pension, while it was 90 percent earlier," Sri Lanka Teachers' Union organizing secretary Dhammika Alahapperuma told The Sunday Times.

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