NSB launches ‘Divisurekum’ pension scheme for senior citizens

Tuesday, 5 August 2014 00:59 - - {{hitsCtrl.values.hits}}

By Waruni Paranagamage The National Savings Bank yesterday launched the ‘NSB Divisurekum’ pension scheme for senior citizens. The product is an annuity scheme or pension plan that guarantees a regular lifetime income and financial security for the account holder. Any resident or non-resident Sri Lankan citizen between the ages of 35 and 64 years can benefit from the scheme while the monthly pension amount could be drawn under three options with attractive interest rates. The launch was officiated by Senior Minister for International Monetary Cooperation and Deputy Finance Minister Dr. Sarath Amunugama, Central Bank Governor Ajith Nivard Cabraal and NSB Chairperson W.A. Nalani.

NSB said it was established to inculcate the habit of saving especially among the rural and under-privileged masses while the Mahinda Chinthana vision emphasised the necessity of strengthening the senior citizens of the country. Accordingly the Central Bank of Sri Lanka stipulated these requirements in its Road Map 2014. Under the ‘NSB Divisurekum’ the customer can choose three alternative monthly pension amounts. Nomination facilities are also available for account holders. Both married and unmarried people can make nominations when opening the account or before drawing their monthly pension. This provides an opportunity for the dependants and family members of the initial account holder to benefit from the monthly pension after the account holder’s death. This system secures the future of the beneficiaries especially dependent children under 18 years of age as their claim of the monthly pension instalment provides them the financial base required to complete their education. “Now, Sri Lanka is facing the rapid growth of elderly population. So pension schemes for the private sector are an urgent need,” Minister Amunugama said. He further added that coping with the job demand in the country is a difficult task for the government without the support of the private sector. Enhancing the production sector and deducting the interest rate is significant for economic development. “But the most significant thing that we ever face as a government is increasing the demand for government job opportunities rather than the private sector because the government sector has pension schemes for senior citizens.” He said that the NSB intervention to uplift the private senior citizens is admirable. NSB Chairperson W.A. Nalani said that non-resident citizens in Sri Lanka also can send money to the scheme through the currencies of sterling pounds, euros, or US dollars and will be credited in Sri Lankan rupees. “We have 230 branches island wide and now citizens can get befits from the ‘NSB Divisurekum’ around the country. It is 100% government guaranteed on the savings,” Nalani added. The special life insurance scheme that provides cover for the beneficiaries is a prominent feature of this pension plan. The insurance cover includes an accidental death cover with a total permanent disability cover of Rs.500,000 and a partial permanent disability cover of Rs. 250,000, a natural death cover of Rs. 25,000, a hospitalisation cover of Rs. 1000 per day for 15 days and a critical illness cover up to Rs. 100,000 for ten critical illnesses.