How
valid is CPS bill without Speaker's certification?
By Sachitra Indivara Mahendra
The Contributory Pension Scheme (CPS) that came into
operation from January last year is being implemented without the
certification by the then Speaker of Parliament, Joseph Michael
Perera.
Bills
passed by Parliament does not become law unless certified by the
Speaker but in this instance a circular giving effect to the Bill
was issued on the presumption the Speaker would endorse it.
The
general belief in government institutions, which put the circular
into effect, is that the Speaker could not sign the bill as Parliament
was dissolved on February 15 this year.
Parliament
sources told The Sunday Times the bill was not certified by the
former Speaker due to a number of problems that had arisen but failed
to give details.
When
The Sunday Times spoke to Mr. Perera, he was unable to recall the
nature of the bill. He said as far as he could remember, he had
signed all the bills that were passed during his tenure as Speaker.
The
CPS bill was introduced in Parliament as an amendment to the Employees
Provident Fund (EPF) Act No. 15 of 1958 in 2002 and it was presented
by the Finance and Labour ministers and not by the Ministry of Public
Administration. The circular was issued by the Management Services
Department of the Treasury and itself is a subject of controversy.
Issued in May 5 last year it gives retrospective effect to appointments
made on or after January 1 2003.
According
to the circular government servants, who joined the service on or
after January 1 2003 would contribute 8 percent of their salary,
while the state institution would contribute 12 percent bringing
the total contribution to 20 percent and the Treasury, the Central
Bank and the Pensions Department are maintaining the CPS from January
2003.
When
The Sunday Times asked if these institutions have the authority
to put into effect the CPS bill without the Speaker's certification,
the sources said they were acting in accordance with the circular
issued by the Treasury. The Sunday Times learns the Central Bank
has received deposits made to this scheme.
The
Sunday Times asked a spokesperson of the Central Bank EPF section
what the situation would be in case the bill is found to be inconsistent.
"We hope the bill would be presented in Parliament again and
be approved. If not we will credit the contributions to the Widows
and Orphans Pensions Fund and release the government servants from
contributing their share of 4 percent contribution to the WOPF for
a period", he said.
Under
the new scheme, a government servant would not contribute to the
WOPF as they already contribute towards this. When The Sunday Times
asked a Treasury spokesperson regarding the legal nature of the
circular, he said the bill was going to be presented in Parliament
again to be debated and approved. He said that until then the circular
would continue to be operative.
However,
JVP sources said there was no probability of getting the bill approved,
as many government MPs including the JVP were not in favour of the
bill. When The Sunday Times spoke to Pensions Director K.A. Tilakaratna,
he also agreed the scheme lacks legal validity.
"We
are having discussions with the Attorney General's Department, over
this issue. The only hindrance is that this circular has no legal
basis, because it does not have the signature of the Speaker. Otherwise
it's OK", Mr. Tilakaratna said.
He
said the present pension scheme is a big burden on the government's
expenditure out of which 11 percent is meant for pensions. |