Bank of Ceylon (BoC) which stands tall as the leading commercial bank in Sri Lanka, takes pride in implementing a Retirement Plan called BoC Vishrama for the benefit of all Sri Lankans who earn a living with self strength. This scheme will provide benefits for cultivators, farmers, fishermen and those engaged in self employment. As per projections, one in four Sri Lankans will be over the age of 60 years in the near future. Bank of Ceylon has identified this as one such important segment of society, who needs assistance said Deputy General Manager, BoC,Product & Development Banking, Sam Samarasinghe, in an interview with Freehold section of the SundayTimes.
Bank of Ceylon has successfully continued to maintain its leading and pre-eminent position and attached a high degree of priority to face the unprecedented challenges that have emerged in the banking sphere today. It has initiated a rapid paced strategy to become a financial power-house. This necessitates among other goals, the development of increasingly more customer-centric and innovative products he added.
Under this setup the BoC has launched the Vishrama retirement benefit plan that guarantees its contributors a regular income stream for a secure future. Mr. Samarasinghe, noted that retirement benefits are offered for fixed periods of, 10 years, 15 years or for life. These benefits accrue even after the death of the contributor and are payable to the nominees as per their agreed plan. In the case of those who subscribe to the life category, benefits are payable for a minimum period of 10 years, he said. The contributors will be given an opportunity to invest any amount of money not less than Rs.100, to this flexible scheme and the benefits will be credited to the savings account of the contributor.
According to the Registrar
General’s Department’s sources, The country's elderly population, aged 55 and above numbering over 2.6 million is now 13% of the total population. The majority of the population numbering 11.2 million are between 20 and 54 years of age which is nearly 50% of the country's population.
The ageing of the country's population, defined as the doubling of the proportion of those over 60 years from 7 to 14 per cent, poses serious economic and social challenges. The provision of adequate income for the ageing population is one of the serious problems arising out of longevity. Mr. Samarasinghe said that the ageing of the Sri Lankan population would erode the real incomes of the ageing population during the extended post-retirement period, the viability of pension schemes and the impact on the public finances of the country. Further, the retirement benefits cover only part of the workforce. Workers in the unorganized or informal sector have to rely largely on their savings or participation in several new pension schemes for informal workers that cover only a small proportion of the self-employed workers, he added.
Taking all these factors into consideration the Bank of Ceylon has introduced BOC Infinity and BoC Vishrama retirement benefit plans for the benefit of the aging population in the island nation. Both these plans are open to all resident and non-resident Sri Lankans over 18 year of age. BoC Vishrama is specially designed for the self employed without a regular income. The plan encompasses many options to choose from. Any person over the age of 18 years can join BOC Vishrama.The instalments can be paid monthly or in lump sum. It will shoulder the financial burden of the contributors enabling them to maintain their standard of living when they retire from an active working life, Mr. Samarasinghe added.
The Bank of Ceylon is also offering a contributed pension plan BoC Infinity for senior citizens both here and abroad that will pay out monthly after they reach the age of 55 or 60,the retirement age, Mr. Samarasinghe said. Having recognised the need of around 84% of the working population of the country who do not enjoy pension benefits, the bank launched 'BoC Infinity,' which is a landmark retirement plan, he added.
This retirement plan is also targeting Sri Lanka's 1.5 million strong expatriate workforce mainly in the Middle East, he said. The Bank of Ceylon (BoC) Infinity Retirement Plan is a pension scheme that caters to the needs of a defined pension scheme in the country with many benefits for its customers. This is ideal for the young generation and employees who are not pensionable as this would guarantee an income in the event of retirement, he said.
All resident and non-resident Sri Lankans and employees of the private sector, corporations and statutory bodies, who either have or do not have pension benefits, are eligible for this scheme. "State employees as well as self-employed people and even migrant workers who wish to improve the quality of their retirement life with an enhanced cash inflow are also welcome," he said. It provides an opportunity for retired persons to invest their provident fund in BOC Infinity and get retirement benefits. Furthermore employers can open retirement plans on behalf of their employees and contribute fully or jointly. The minimum retirement benefit is Rs 10,000 and in multiples. The service is available in BoC's 308 main branches and 190 mini branches islandwide, Mr. Samarasinghe said.
BOC Infinity and BoC Vishrama will be yet another milestone in the progression of Sri Lanka's socio-economic development, he said. |
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