“Arassawa” Pre-planned Pension and Social Security Benefit Scheme

About Arassawa

“Arassawa” pre-planned pension and Social Security Benefit scheme is executed under the parents or guardians who may enroll children below the age of 17 years under their guardianship. Once the child reaches 18 years the account is transferred to the “Surekuma” monthly pension payment scheme. The member becomes entitled to a pension at age 60 and the pension amount is determined by the balance accumulated in the account.

Importance of the Pre-planned Pension Scheme

Purpose & Context

Today’s parents are highly competitive and often direct children toward professions that offer retirement security (for example, doctor, engineer, accountant or government jobs). This trend can limit broader educational and career choices and may lead parents to prioritize future security over a child’s personal interests. The scheme aims to provide a social-security-based option so parents can secure a child’s future without forcing narrow career choices.

Economic & Social Impact

When educational qualifications and job requirements do not match, it can cause personal dissatisfaction, lower incomes and underutilized labour resources, reducing contributions to national economic growth. The scheme supports balanced development by encouraging broader education and protecting children’s future welfare amid demographic challenges such as an ageing population.

Children’s Rights & Development

  • Reduce pressure to limit children to traditional career paths
  • Support extracurricular development (sports, creativity)
  • Provide parents a way to ensure future security without restricting education

By providing a pension-based investment for children early, parents can secure their child’s future while allowing the child to pursue preferred fields of study and careers.

National Importance

Given demographic challenges, including an increasing elderly population, national measures to protect the next generation are essential. Including children in a pre-planned pension scheme is an important national investment to ensure social security and contribute to long-term economic stability.

Scheme Benefits

When the child’s account matures at age 18 and transfers to the Surekuma Pension Scheme, the member will be entitled to Surekuma benefits according to the matured account balance. Key benefits include:

  • Lifetime monthly pension from age 60
  • Pension to the spouse
  • Death gratuity
  • Partial and permanent disability benefits

Conditions for Educational Benefits

  • To receive educational milestone benefits when paying by installments, contributions must have begun at least one year before the examination date.
  • For lump-sum payments, membership must be obtained before the examination date.
  • Eligibility for additional education benefits requires contributions to a pension of Rs. 10,000 or more.

Initial Premium Chart

Chart: Initial premium chart for a monthly pension of Rs. 1,000.00

Age as at next birthday (Years) Monthly premium (Rs.) Number of monthly premiums Amount if paid annually (Rs.) Number of annual premiums Amount if paid on lump sum basis (Rs.)
0 8 216 96 18 900
1 9 204 108 17 980
2 10 192 120 16 1,060
3 11 180 132 15 1,150
4 12 168 144 14 1,245
5 14 156 168 13 1,350
6 16 144 192 12 1,460
7 18 132 216 11 1,580
8 21 120 252 10 1,712
9 24 108 288 9 1,854
10 28 96 336 8 2,008
11 34 84 408 7 2,175
12 41 72 492 6 2,355
13 51 60 612 5 2,550
14 67 48 804 4 2,762
15 93 36 1,116 3 2,990
16 145 24 1,740 2 3,240
17 303 12 3,510 1 3,510
Note: Above information relates to a monthly pension of Rs. 1,000. Contributions may be made for any pension amount starting from Rs. 1,000.00.

Flexible Eligibility

Children under guardianship can be enrolled; accounts transfer to Surekuma at maturity (age 18).

Social Security

Provides long-term social protection for children and contributes to national economic stability.

Long-term Benefits

Helps secure a stable future income and encourages balanced human-capital development.