Ceylon Bank Employees Union opposes proposed National Pensions Fund

Ceylon Bank Employees Union opposes proposed National Pensions Fund

Written by Tharushan Fernando

17 Nov, 2015 | 9:51 pm

The Ceylon Bank Employees Union says that they oppose the proposed National Pensions Fund. They pointed out that the secure EPF will be used for the objectives of the government, through the proposed fund.

The Employees’ Provident Fund (EPF) was established under the Act No. 15 of 1958 for employees who serve in semi government or private institutions who do not receive a state pension, and is administered by the Central Bank of Sri Lanka. As of  December 31, 2014, the total value of the EPF stood at Rs. 1486.9 billion.

The Employees’ Trust Fund was established on March 1, 1981 under the provisions of ETF Act No. 46 of 1980. The aim of the ETF is to build a sense of security for employees serving in semi government or private institutions who do not receive a state pension. The ETF is administered by the Employees’ Trust Fund Board and of  December  31, 2014 its total value was Rs.194 billion.

The current government proposed to amalgamate both the EPF and the ETF to create a new national pension fund that will have a combined worth of Rs. 1.7 trillion.

Chairman of the Ceylon Bank Employees’ Union Bank, S.B Jayaratne noted that the previous government used these funds as per their wishes and what happened was the investment in institutions suffered massive losses and the funds were in a crisis situation. And they say that the managing of the ETF will be taken out of the purview of the Central Bank, but we oppose this sense of insecurity …”

General Secretary of the Ceylon Bank Employees’ Union, A.K Bandara stated that the Central Bank operated this is a proper manner.  However, if this fund is given to a Investment Board, they will invest and take commissions.

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