National Chamber of Exporters backs CB plan to merge EFP-ETF pension funds
View(s):The National Chamber of Exporters this week welcomed a proposal by the Central Bank, as reported in the media, to merge the two pension funds – Employees Provident Fund (EPF) and Employees Trust Fund (ETF).
The chamber said in a statement that 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 funds, and provide more benefits to employees in the private sector.
Through this move it is envisaged that employees who run small business entities will be able to benefit, by obtaining assistance 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 said.
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 marketplace will improve.
“In fact the Chamber proposed this move when submitting budget proposals of the chamber for 2014. Further, it was also suggested that a similar approach be adopted in regard to NBT & VAT. The chamber hopes that the proposal will see the light of day in regard to its implementation,” the release said.