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Pension Plan

Apr 06, 2010 (LBO) - State-run Bank of Ceylon (BoC) is offering a contributed pension plan for Sri Lankan expatriates abroad that will pay out monthly after they reach the age of 55 or 60, officials said.

Wickremasinghe said BoC was Sri Lanka's largest receiver of foreign remittances and it made sense to create a new product to raise deposits and fill a customer need.

C Samarasinghe, deputy general manager, BoC said the pension plan was could be purchased by anyone.

Most Sri Lankan resident formal private sector workers contribute to a state-run pension fund which pays a lump sum on retirment, while state-workers received an uncontributed pension at the expense of the people.

Samarasinghe said nearly 85 percent of Sri Lanka’s working population does not have a pension plan.

Samarasinghe said pension plan becomes active at the age of 55, but contributions can be extended until 60 years.

"Our overall target is to achieve one million accounts, Samarasinghe said.

Account holders have the option to make a monthly payment or deposit a lump sum, Lionel Siriwardena, head of research at BoC said.

BoC Infinity gives accountholders an option to withdraw a lump

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