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Bonanza for 300,000 pensioners from July
More than 300,000 public sector employees who retired before 2006 will be entitled to a pension increase, ranging from Rs. 3,000 to Rs 10,000 from next month, a senior official said. The circular announcing the increase was signed by Public Administration, Local Government and Democratic Governance Ministry Secretary J. Dadallege hours before the dissolution of Parliament, following a recent Cabinet decision.
The pre-2006 public sector pensioners have been demanding the rectification of a major anomaly in their pensions for the past several years, claiming that they were in at a disadvantage when compared to those retired after 2006.Pensions Chief S.S. Hettiarachchi told the Sunday Times that the Government’s annual pension bill would rise by Rs. 16 billion due to the increase which would benefit some 330,000 pensioners.
“We have understood the hardships faced by the pensioners particularly those who have retired before 2006. The increase was approved by the Cabinet following a directive from President Maithripala Sirisena in keeping with his 100 day programme of work,” he said.
He said the revision would eliminate any anomaly in the pensions of those who retired prior to and after 2006. At present, around 558,000 public sector retirees benefit from the pension scheme. According to the circular, the pensioners, for whom the revised pension is applicable, will be entitled to the cost of living allowance of Rs. 3,525 paid to officers who retired after January 2, 2006 and the interim allowance of Rs. 3,550 paid in accordance with the budget proposal of 2015.
Other allowances paid to the pensioners who have retired before January 1, 2006 will be terminated with the effective date of the revised pension.