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.
Issuing a media statement yesterday (09), the Minister categorically rejected reports claiming that the government was preparing to introduce a pension system in place of EPF and ETF contributions, describing such claims as false and misleading.
He emphasised that EPF and ETF funds belong to the contributors and assured that employees will be able to access their savings without any hindrance upon retirement. The Minister further noted that contributors are currently allowed to withdraw up to around 30 percent of their funds to meet emergency needs.
Minister Fernando stressed that the government has no intention of reducing, curtailing or diverting any existing employee benefits.
“Our government will not take any action to reduce the entitlements of workers. On the contrary, we are committed to providing additional benefits,” he said.
Addressing public discussion on the possible introduction of a pension system in the future, the Minister clarified that while such debates may exist in society, no decision has been taken to convert EPF funds into a pension scheme or to replace the existing lump-sum payment system.
“The money saved through the hard work of the people will be used solely for their needs. There is no government decision to divert EPF funds into a pension system,” he added.
