The first meeting of the Implementation Committee of the Central Provident Fund System was held at the Ministry of Planning and Finance in Nay Pyi Taw yesterday.
Speaking at the meeting, MoPF Union Minister U Soe Win said the yearly increase of the number of people living on pensions and the rise in life expectancies pushes the expenditure on pensions year after year. He said the current pension expenditure uses 1.5 per cent of the nation’s GDP, one-sixth of the national revenue, and adds up to 10 per cent of the national expenditure every year.
The Union Minister said we need to follow global practices and adapt a pension system based on a provident fund so that our national pension system is sustainable and the national budget expenditure can withstand the strain in the long run. He said we must enact a suitable law on the central provident fund and design a master strategy to implement it in a timely manner.
Following the Union Minister’s speech, committee chairperson Deputy Minister U Maung Maung Win said the current national pension system derives its finance directly from the national budget, has no fund accumulation programmes, and is assignment-based. He said we must set up a central provident fund system for a sustainable pension system and head towards a national system that encompasses staff from the private sector in the future.
Next, committee secretary Dr. Wah Wah Maung, Director-General of the Pension Department, explained the long-term and short-term procedures for reforming the national pension system, drafting the Central Provident Fund Bill, and forming a technical committee to research international experiences regarding this matter.
The Implementation Committee of the Central Provident Fund System was formed on 19 February with Order No. 27/2017 from the Office of the President to work towards ensuring civil servants and staff from the private sector can afford housing, have access to healthcare protection, and monthly pensions upon their retirement.
—MNA (Translated by Zaw Htet Oo)