Denial of Rights of Sri Lanka Pensioners Abroad
Denial of Rights of SL Pensioners Abroad – New Payment Procedures
By Displaced Sri Lankan Pensioner
Also read related update to this article: More on ‘Denial of Rights of SL Pensioners Abroad’
Confusion surrounds the payment of monthly pension to pensioners living abroad with the Government of Sri Lanka imposing new procedures with no direct or indirect intimation given to the recipients of pensions. These changes that involve substantial departure from the pre-existing method of payments have been announced by Pension Circular 16 of September 2009 issued by the Director General of Pensions and published in the Sri Lanka’s Department of Pensions website (www.pensions.gov.lk).
Although many pensioners living abroad do not know that a new Circular has been issued, what is surprising is that its provisions are declared to be applicable immediately, that is October 2009. Not many have access to computers and also do not know how to use a computer.
According to the Pension Circular, at present “there are nearly 25,000 Sri Lankan pensioners living abroad, mostly in Australia (including New Zealand), India, Canada, United Kingdom and United States of America. A considerable number of them are also living in Middle East and few other countries as well.”
In an apparent attempt to justify the changes, the Circular confesses that “payment of pension in the past has proceeded (sic) without appropriate information of them in the Department of Pensions and without proper method of payment or management.” What a self-confessed indictment of the functioning of a government department that has been in the public eye for several decades? Despite its failings, one must accept that the old system of pension payments had served the retired government servants as well as many widows and orphans honourably who had joined government service because of the guaranteed pension benefit after retirement and in case of early death some assured income for their direct dependants.
New Procedure
Under the new procedures, payment of Civil Pension or Widows’ & Orphans’ pension are to be made to pensioners resident abroad through Sri Lanka overseas Missions or through a special bank account in a local (Sri Lanka) bank. Further facility will be made to draw the pension via Divisional Secretariats subject to certain conditions.
The new procedures set out indicate a substantial increase in the paper work and possible delay in payments. Moreover, the additional cost to the government both in Colombo and in overseas Sri Lankan Embassies and High Commissions because of the extra work involved will be considerable.
Via Embassies and High Commissions
With regard to the pension payments to be made through Embassies/and High Commissions of Sri Lanka, the circular states that this facility will be available only in five countries, namely, “United States of America, United Kingdom, Canada, India and Australia. Payments to pensioners in New Zealand will be made through High Commission of Sri Lanka in Canberra, Australia”.
* Pension file for each country will be prepared and maintained by the Department of Pensions in Colombo. The payment file prepared will be sent to the specified Missions monthly.
* Embassy/High Commission will take action to pay pension accordingly and after verification of his/her existence. Payments will be made by cheques or by crediting to the relevant bank account of the pensioner. A life certificate must be submitted by the pensioner to the embassy every three months.
* The money needed by the overseas Missions for monthly pension payments will be sent through the Ministry of Foreign Affairs in Colombo. However, monthly payment details should be sent by the Missions to the Department of Pensions.
* Hereafter, all pension payments should be made only in compliance with the file prepared by the Department of Pensions in Colombo.
General instructions to SL Embassies/High Commissions/Missions
* Monthly pension file will be prepared by the Department of Pensions and dispatched to Missions from October 2009. Relevant data will be available in the official website www.pensions.gov.lk. This raises the question of the right to privacy of the pensioners. “The monthly pension file will be prepared in accordance with the information provided by pensioners via ‘Data Entry Forms’. Pension of pensioners who have not submitted the required information” will be temporarily nullified. These will be paid together with arrears from the approaching months on receipt of information”. Therefore, all pensioners resident abroad must, without fail, submit the necessary information via Data entry Forms to The Department of Elections, Colombo.
* The Missions must collect the Life Certificate of each pensioner at least once in three months to ascertain that the pensioner is living. Monthly pensions should be paid by the Missions only after verifying whether or not the pensioner is still living. Life Certificate may be prepared (as in Annexure 2) or as preferred by Heads of Missions in the specified countries. It should be certified by an officer in the Mission, Chief Incumbent or a Priest of other religions, officer in the (Sri Lankan) Army, Navy and Air Force who had migrated from Sri Lanka or any other government officer, Doctor, Engineer, Accountant or Notary Public/Justice of Peace. Ratification by the pensioner himself/herself is adequate “if the pensioner personally calls in the Mission to submit the life certificate”.
* After verification, pension payments will be made by the relevant Sri Lankan missions either by cheques or direct credit to the relevant bank accounts of pensioners as appropriate.
* In the case of widows’ & orphans’ pension, it is necessary to verify whether the pensioner has not remarried at the time when the pension is paid. The Embassies/High Commissions/Missions should get an affidavit from the widow/widower once in each year to ensure the pensioner is not remarried.
Payments through approved special bank account
i. The special account may be opened only at People’s Bank – Queen’s Branch’ Facilities are available for pensioners to open this bank account having arrived in Sri Lanka or while overseas.
ii. In order to open this account, pensioners are required to submit duly filled Data Entry Form, Mandate form, Affidavit, Letter of Consent, Documents submitted by pensioners resident abroad should have been ratified by Head of Embassy/High Commission/ Mission.
iii. The following conditions are applicable to this account:
Joint accounts or ATM cards may not be used. Money may be drawn by pensioners themselves having arrived in Sri Lanka. (Money in this account is not transferable, however this will be considered in due course).
iv. Pensions will be directly credited to this pensioner’s bank account and pensioners are required to submit life certificates to this department (Department of Pensions, Colombo) once in three months.
v. This Department will take action to instruct bank officials regarding recollection of money of expired pensioners or overpayments and making payments to heirs. (The writer’s comment: The readers should fathom the bureaucratic work involved).
Comments
The requirement that a bank account to be opened in a specified branch of a stipulated bank (People’s Bank, Queen’s Branch) and conditions imposed on the right of the pensioner to operate his/her bank account are unduly restrictive, plainly unreasonable and legally questionable. It seems to limit the right of the account holder who is resident abroad to withdraw his/her own money only when in Sri Lanka. It also seems to prohibit the right of the account holder to place a standing order via this account to meet a regular expenditure, or meet expenses in Sri Lanka by issuing cheques while being broad. It also makes it impossible for pensioners, resident abroad to use their pension money from this account to financially help their kith and kin on a regular basis, or make arrangements with the bank to meet their financial obligations within Sri Lanka.
At a time when the country needs to conserve foreign exchange, the rationale for the Government’s decision to pay pensioners living abroad their pensions in foreign currency is inexplicable.
If the proposed methods are to prevent the abuse of the pension rights by fraudsters, it is very doubtful whether there will be any financial benefit to the government. If the existing system has been properly administered with proper checking procedures, the overpayments would not have happened. The extent of this loss is not known. There are many areas where the waste of public funds is huge. These do not require elaborate administrative arrangements as in the case of pension payments to expatriates and the saving can be achieved just by policy changes, eradication of corruption and improved performances. Is the focus on the pensions of Sri Lankan retired officers and widows of government officers resident abroad would appear to be a diversion away from other important reforms needed to improve the efficiency of the public service, which now lacks proper controlling mechanisms as in the good old days when many of the present pensioners were serving the elected governments and the public honourably.
In order to give an idea of the additional demands on the pensioners in their twilight years, the aforementioned forms are given here in Adobe format.
Those who wish to fill in the forms are advised to logon to the website www.pensions.gov.lk
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Firstly because while the ordinary masses are asked to tighten their belts and are staggering in the face of the skyrocketing cost of living, the SAARC Summit is to cost Sri Lanka a whopping Rs. 3 billion. Secondly there is apprehension that to commemorate the anniversary of the July 83 pogram on the Tamils, during the tenure of JR Jayewardene regime, the LTTE may unleash a sensational attack in Colombo to abort the holding of the Summit. Thirdly most of the countries who will be participating in the Summit have expressed apprehension of the prevailing security situation in the island.