The National Savings Bank introduced "NSB Pension+", an innovative financial instrument to supplement the retirement benefits, a first of its kind to the local market last week.

The bank offers the potential customers, a contributory scheme which will enable a member to obtain financial remuneration upon retirement, cover for selected critical illnesses, hassle free housing loans and the opportunity to win valuable prizes. The return on investment moreover has the seal of government guarantee.

"NSB Pension+" another financial first by the NSB endeavours to offer multi-faceted financial services at beneficial rates. This takes on from its position as the foremost savings institution in the country and proves beyond doubt its commitment to the people of this country, an official of the bank said.

The first lucky 50,000 to enrol in this scheme will receive special benefits by way of a one-to-one match of the initial contribution up to Rs. 1,000 with 50 percent to the account and the balance in "Ridee Rekha" certificates.

The members of the scheme may contribute a regular premium and obtain a regular return after 55 for a pre- determined period or lifetime. Alternatively the maturity sum may be withdrawn as a lump sum. "NSB Pension+" is designed as a combination of instalments while a lump sum is also possible. "It is so flexible that a member can contribute any amount at any time and any frequency from the age of 16. Another advantage is that maturity can be deferred until a member turns 60", the official said.There are medical benefits under this scheme where up to a maximum of Rs. 1 million can be obtained for selected critical illnesses once every five years with no prior medical test needed. Further no deductions from maturity benefits will be made. Among the other features of this scheme are that members will receive a 50 percent discount in processing fee for their loans. Moreover, for regular monthly contributors, no salary details are required to be furnished for mortgage loans. Lower interest rates are possible on group personal loans where entities have made contribution on behalf of their employees.

Since its beginnings in 1971, NSB has played a pivotal role in the nation’s economy and is the premier savings institution in the country. The fact that the year 2006 ended with a profit of Rs. 3.5 billion, 4,440 service points and at present there are 15.6 million account holders stands testimony to this. The Fitch Lanka bestowed the AAA (lka) rating on NSB the only Sri Lankan financial institution in this category.