NCE commends CB proposal to merge EPF, ETF pension funds

Wednesday, 7 October 2015 00:03 - - {{hitsCtrl.values.hits}}

The National Chamber of Exporters of Sri Lanka (NCE) yesterday commended the proposal of the Central Bank to merge the EPF and ETF pension funds.

According to media reports, it is proposed to merge the EPF and ETF pension funds, which collectively accounts for more than Rs. 1 trillion, with a view to simplify the operations of the two fundsand provide more benefits to employees in the private sector, the NCE said in a statement.

Through this move it is envisaged that employees who run small business entities will be able to benefitby obtainingassistance from the huge combined fund.Further it is envisaged that the operations related to the combined fund will be assigned to professional fund managers who will ensure the prudent management of the fund related to its investment, to enable private sector employee to reap optimum returns, since questions have been raised regarding the management of the two separate funds in the past, resulting in the eroding of their values.

“The chamber is of the view that the proposal when implemented will not only benefit private sector employees, but will also enable export enterprises to reduce their staff costs and other administrative costs as well as the time expended to prepare documents and returns to two separate institutions by not having to assign separate staff for the purpose.As a result productivity of the enterprises and their competitiveness in the international market place will improve,” it said.

The chamber pointed out that it proposedthis move when submitting its Budget proposals for 2014. Further, it was also suggested that a similar approach be adopted in regard to NBT and VAT.

The chamber hopes that the proposal will see the light of day in regard to its implementation, it added in a statement yesterday.