The Public Service Provident Fund has been set up as a provident fund for employees who are not entitled to pension in the public sector. The aims and objectives of this fund have been expanded so that a wide range of service categories such as permanent, casual, daily wage earners, contract workers, trainees etc. employed in the government service can get benefits.
Every employee in the public service is not entitled to a pension and therefore Public Services Provident Fund has been established under Public Services Provident Fund Ordinance No. 18 of 1942 addressing the necessarily for a fund to safeguard such employees.
The objectives and goals of the fund have been widen by the Amendment Act No. 17 of 2003 and circulars issued from time to time in order to extend the benefit of the fund to cover a wide range of service categories such as the employees recruited on permanent, casual, contract and training basis and on daily wages.
Officers eligible to be a member of the fund
- Permanent employees of public service, who are not entitled to a pension
- Public servants, who receive temporarily a monthly salary
- Public servants, who are not entitled to a pension but receive daily wages or monthly payments
- Employees, who are not retired persons but recruited on contract basis
- Foreign employee serving in a foreign diplomatic mission of Sri Lanka, who is not entitled to a pension or non-pensionable Sri Lankan employee
- Officers serving in the staff of Ministers and the staff of the Ministers of Provincial Councils
Officers who are not eligible for the membership
- Officers retired from public service
- Officers beyond the age of 60 years
- Retired public officers, who are engaged in the staff of Ministers
- Officers in the staff of Ministers, who are belonging to the schedule 'q' and completed a service of 05 years in relevant posts
Obtaining membership/ registration
Online method has been introduced by Pension Circular No. 02/2017 dated 06.10.2017 for registering in the Public Services Provident Fund and updating the particulars of the contributions.
Recovery of contributions
- All the officers, who contribute to this fund, should strictly remit 8% from their monthly salary as the compulsory contribution'.
- The institute, where the officer serves, should remit an amount equivalent to 1.5 from the compulsory contribution i.e. 12% to this fund as the contribution of the government
- All the monthly contributions recovered to the fund from 01.01.2023 should be calculated to the nearest Rupee.
Method for remitting contributions to the fund
- When the contributions of the Central Government, Provincial Councils and Local Government are sent, the compulsory contribution (8%) and contribution of the government (12%) should be sent strictly by cheques as prescribed by Pension Circular No. 02/2017
- The cheques should be issued in favor of 'Chairman, Public Servicves Provident Fund'
Instances, where the membership is cancelled/ where claims can be made for benefits
- Receiving pensionable status
- Completion of 60 years of age
- Resignation from post
- Abolition of the post
- Expiry of the period of service on contract basis
- Removal from service on disciplinary ground
- Vacation of post
- Death of the officer
Initial works have already been commenced for carrying out all operations of the fund through online channel and it will be launched in due course. At present, the steps to be followed in applying for the benefits and all relevant forms have been submitted by Pension Circular No. 07/2015.
Other documents to be sent along with the application when applying for the benefits of PSPF
- Letter of appointment with contribution to PSPF (Letter of first appointment)
- Following documents to confirm the termination of service,
- The letter of appointment to permanent and pensionable post or,
- Letter of approval for the resignation in case where the officer resigns or,
- Letter of termination of service/ letter of termination of contract service or,
- Certificate of birth of the contributor in case of reaching the due age
- Report of the recovery of contributions
- A photocopy of the first page of the passbook of a state bank issued for an active bank account maintained in the name of the contributor
- In addition to the above, following documents at the demise of the contributor,
- A copy of the National Identity Card
- Vacation of post
- Death of the officer
Initial works have already been commenced for carrying out all operations of the fund through online channel and it will be launched in due course. At present, the steps to be followed in applying for the benefits and all relevant forms have been submitted by Pension Circular No. 07/2015.
Benefits received at the time of cancelling membership
- Those who terminate the contributions on the grounds such as resignation from service, completion of prescribed age, abolition of post, expiry of the contract service period, death, are entitled to the contributions credited and their compound interest along with the bonus of the government and its compound interest.
(Section 14 of Public Services Provident Fund) - If a member, who received benefits under this section, makes a request to take the period under contribution to public services provident fund in to account of pensionable service period on appointment later to a pensionable service, relevant period can be made applicable for calculation of the pension, if such officer agrees to pay back the bonus of the government and compound interest along with an interest of 4% from the date of receiving above to the date of paying back them and on recovery of relevant amount.
- Those, who terminate contributions on the reasons such as termination of service on disciplinary grounds, vacation of post etc, are entitled only to receive the contribution and the relevant compound interest. Further, this service period will not be taken in to account for the calculation of pension.
(Section 16- Public Services Provident Fund) - When an officer is appointed to a permanent and pensionable post, he/she is entitled to receive the contributions credited by the officer along with relevant compound interest. It should be noted specially that, this service period will be counted for the purpose of calculating the pension.
(Section 20- Public Services Provident Fund) - Opportunity given to the members, who receive pensionable status, to contribute to the widows' / widowers' orphans' pensions scheme can be highlighted as another special benefit.