The Parliamentary Committee on Ways and Means last Wednesday (29) recommended to the Department of Pensions to formulate a compassionate strategy to augment pension benefits in accordance with the prevailing cost of living index, parliament sources said.

Chaired by MP Patali Champika Ranawaka, the committee deliberated on this crucial matter involving various government entities, including the Department of Pensions, National Secretariat for Elders, and representatives from pensioners’ associations.

It was revealed during the meeting that the Department of Pensions administers over 700,000 active pensioners, with some individuals inactive due to ongoing investigations or deceases. Approximately 26,000 retirees, comprising 19,000 from civil services and 7,000 from the armed forces, join the active pensioner roster annually. Unfortunately, about 20,000 retirees are removed from the list due to mortality. The department has earmarked Rs. 413 billion monthly for pensions, with a gratuity equivalent to 24 times the pension for individuals retiring at 55 years, payable over a decade.

The National Secretariat for Elders currently disburses a monthly allowance of 2,000 rupees to low-income earners above 70 years with a monthly income below 6,000 rupees, extending assistance to 733,204 individuals validated by Grama Niladhari certificates. The Committee Chair instructed officials to provide detailed statistics on additions, departures due to decease, and the number of elders on the waiting list for allowances.

A considerable discrepancy in pension benefits emerged between pre-2017 and post-2020 retirees due to incremental salary increases for public servants. The decision to suspend the pension increase in 2020 and subsequent salary raises for teacher principals in 2021 aggravated the disparity. Pensioners lamented that the Rs. 10,000 salary increase in 2024 only led to a meager Rs. 2500 rise in pension, which failed to align with the escalating cost of living, urging for a recalibration of pension increments tied to the cost of living index.

The Agrahara insurance scheme’s benefits, available to post-2016 retirees, sparked calls to extend similar advantages to pre-2016 retirees. Committee Chair MP Ranawaka mandated officials to appoint a Department of Pensions representative for discussions with pensioners’ associations scheduled to be held this week (Dec 15) to address their concerns.

Suggestions were made to incorporate senior citizens’ allowance and disability beneficiaries into the social benefits list, emphasizing the urgency of a digital system to promptly update pensioner deceases for efficient pension disbursements. The committee’s recommendations signal a humanitarian approach to address pension disparities and fortify support for the retired populace.State Ministers Lasantha Alagiyawanna and Anuradha Jayaratne, and MPs W. D. J. Seneviratne and Nalaka Bandara Kottegoda were also present.