SriLankasSchemesforInformalSectorWorkers.pptVIP

Sri Lanka’s Schemes for Informal Sector Workers Workshop on Extending Pension Coverage to Informal Sector Workers in Asia Bangkok, November 30-December 1, 2006 Outline Country Background Employment and Pensions Informal Sector Pensions Problems Lessons A Way Forward Country Background Current Situation Economy GDP per capita ~ $1,100 Low tax base ~ 17% GDP Ageing population Life expectancy 77 years by 2050 60 years 36% of electorate (2050) Social protection High levels of coverage for health, education Significant income transfers to “poor” ~45% of workforce covered by formal old age income schemes History History and Politics Universal suffrage - 1931 Plantation sector and rural aspirations in colonial period Two party competition 1950s High tax base in 1950s Major Initiatives Free education and health care - 1930s Food rations - 1940s Social Insurance Commission - 1947 Provident Funds - 1950s Employment Pensions Who’s in work? Formal Sector Coverage Civil Servants Pensions Defined benefit scheme Coverage ~ 850,000 Provident Funds - EPF/ETF Defined contribution schemes Coverage ~ 2 millions Provident Funds - APPFs Defined contribution schemes Coverage ~ 250,000 Informal Sector Informal Sector Pensions Responding to Informal Sector Workers (Voters) Farmers Farmers’ Pension Scheme 1987 Fishermen Fishermens’ Pension Scheme 1990 Self-employed Self-employed Pension Scheme 1996 Informal sector private employees Efforts to enforce EPF collection Ad-hoc small schemes Migrant workers Proposals only . . . But no voting rights! Farmers’ Pension Scheme Farmers’ Pension and Social Security Benefit Scheme Act, 1987 Contributory pension scheme for farmers with MoF contribution Administered by AAIB/Ministry of Agriculture Pension + social security benefits (death gratuities, disability benefits) Fishermen’ Pension Scheme Fishermens’ Pension and Social Security Benefit Scheme Act, 1990 Contributory pension scheme for farmers with MoF contribution Administered by AAIB/Ministry