The government of Myanmar will establish a pension fund instead of using the state budget, according to Dr. War War Maung, Director General of Pension Department. Although most countries have established the pension fund, also known as a superannuation fund, Myanmar does not have such a scheme for pensioners.
“Pension budget is over one percent of the country’s GDP and equals to the one-sixth of tax revenue of the country. We can say it is a lot. Therefore, we need to establish a pension fund,” she said at the press conference held on June 24 by the Ministry of Investment and Foreign Economic Relations, Ministry of Commerce, and Ministry of Planning, Finance, and Industry.
The Ministry of Planning, Finance and Industry is now drafting Central Pension Fund Law aiming for the sustainability of the pension system and financial resilience. It has developed pension strategy, plan and budget and will submit to the cabinet and, then, to the parliament.
Government employees with over 10 service years will get a pension under the old system and those under 10 years will be subject to the pension fund law.
In January 2019, the government increased pension payment for the government employees, who retired before April 1, 2018, to the same amount that will be paid to the serving employees when they retire.
There are around 700,000 pensioners in Myanmar with 52 million population.
Written by Tayzar Bhone Myint/ Translated by Min Thu Aung