Bank employees to launch pension fund

The Union of Bank Employees in Lebanon plans to launch a pension fund for its employees, said Assad Khoury, the union’s Chairman.

The union will finance the fund from employee subscriptions and possible contributions from banks. Khoury said they will negotiate with the banks about their potential contribution to the fund.

“Even if the banks say ‘No’ we will continue with this venture,” he said.

The fund will invest subscription proceeds in various low-risk financial instruments with a return that should not be less than five percent according to current market rates, Khoury said. These instruments could be preferred shares, long term dollar deposits, deposits in liras, or Eurobonds.

Assad said they will carry out another actuarial study about this project before they launch it.

The employees of local banks already benefit from a mutual fund that allows them to continue to be covered by medical insurance after retirement.