Commercial Bank ‘Future Pensions Plan’ can be opened by anyone between the ages of 18 and 65 years under one of five deposit plans offered by the Bank.
Under the first option, depositors aged 18-54 may deposit equal instalments every month till the age of 55 and start receiving the pension at the age of 55.
The second option, for the same age group, enables a depositor to make a single, lump sum deposit and start receiving the pension at the age of 55 or 60.
The third option allows depositors aged 18-59 years to deposit equal instalments every month till 60 years and start receiving a pension from 60 years.
Depositors aged 55 to 60, can make a single, lump sum deposit and start receiving the pension from the end of the same month, while those aged 60 to 65, who will be exempt from Withholding Tax, may make a single, lump sum deposit and also start receiving their pensions from the same month. The Pension Plan provides an opportunity for people who are retiring to deposit their Provident fund, Trust Fund or Gratuity as a lump sum payment.
The Future Pensions Plan allows both individual and joint pension plans to be opened if both parties are above 60 years of age, the Bank said.
Depositors may choose a pension receivable period of three options – 15, 20, or 25 years.
The depositor will also benefit from a very attractive annual bonus payment paid by the bank, during the agreed period of payment. The annual bonus is equivalent to the monthly pension payment, the Bank said.
“There is an identified need in our country for investing in retirement, but the options have hitherto been limited,” said Mr. S. Renganathan, Commercial Bank’s Chief Operating Officer. “A bank of the size and stature of Commercial Bank can play a significant role in addressing this need, helping to secure the future for both the younger generation and the senior citizens of the country.”
The minimum monthly pension payment will be Rs. 10,000 and the maximum Rs. 100,000, depending on the need and the capacity of the depositor.
A surgical and hospitalisation cover of Rs 50,000 annually from the age of 18 years up to the age of 75 years will be available to persons covered by this pension plan.
If a third party wishes to open an account on behalf of a senior citizen, such a request will be considered subject to the pension plan being opened in the name of the senior citizen.
The new Future Pension Plan allows the depositor to nominate his / her spouse or any other beneficiary who will receive the balance of the pension payments and the bonus payments due, throughout the agreed period of the plan, in the event of the depositor’s unexpected demise. However the other benefits will not be available to the nominees.
The Future Pensions Plan can be obtained from any one of the Commercial Bank’s 238 branches in Sri Lanka and is backed by the strength and stability of the country’s largest private bank.
Ranked the most valuable private sector brand in the country in 2014, the Bank has won multiple awards as Sri Lanka’s best bank over several years, and was adjudged one of the country’s 10 best corporate citizens by the Ceylon Chamber of Commerce in 2013. The Bank has been rated the Most Respected Bank in Sri Lanka by LMD for the past 10 years, has been the second Most Respected Corporate entity in the country overall for the past four years, and been rated No 1 for Honesty in 2013 and 2014 by the magazine.
