The government has not taken any decision to replace Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) benefits with a pension scheme, Labour Minister Anil Jayantha Fernando said on Thursday.
In a media statement issued yesterday (09), the Minister dismissed reports claiming that the government was preparing to introduce a pension system in place of EPF and ETF contributions, describing such reports as false and misleading.
He stressed that EPF and ETF funds belong to the people and assured that contributors will be able to access their savings without any obstacles upon retirement. The Minister also noted that up to 30 percent of the funds can be withdrawn to meet emergency requirements, adding that there is no intention to reduce or curtail existing employee benefits.
“Our government will not act to cut back anyone’s entitlements. On the contrary, we are committed to providing additional benefits,” he said.
Addressing ongoing public discussion on the possibility of introducing a pension system in the future, Minister Fernando reiterated that no decision has been taken to convert EPF funds into a pension scheme or to replace the current lump-sum payments with pensions. He emphasized that the money saved through the hard work of employees will be used solely for their benefit and not diverted for any other purpose.
