Myanmar to invest CPF funds for pensioners

Money from a Central Provident Fund (CPF) can be invested in selected securities with the aim of generating returns and growing the size of the fund,
according to a new bill.According to the Myanmar Central Provident Fund bill, funds can be used to buy securities, treasury bills and bonds and shares both domestically and internationally.

The CPF is being established by the current government in view of a rising number of pensioners with longer life expectancies. Myanmar has nearly 1 million pensioners and spends about K1.1 trillion on pension and retirement gratuities every year, Minister for Planning, Finance and Industry Soe Win said at the (1/2020) meeting of the Implementation Committee of the Central Provident Fund System in March.
With pension payments expected to spike in the next 20 years, a CPF system will be established in the coming fiscal year. Under the system, public servants are expected to contribute 5 percent of their salaries into the CPF. The funds will paid out as pensions after retirement.
Pensions are being paid from the State budget and this expense adds up to about one-sixth of total state revenue, said Daw Wah Wah Maung, director general of the
Pension Department under the Ministry of Planning, Finance and Industry.
She added that CPFs are common in other countries and establishing one in Myanmar will help the country sustain its pension system over the long term.

According to the bill, the fund will be managed by a board of directors which includes government representatives, employee representatives and outside experts. The board will set policies and investments strategies as well as ensure these are implemented. – Translated

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Source : Myanmar Times

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