More benefits for account holders:

Amendments to EPF Act

by Ananda KANNANGARA

Funds worth Rs. 850 billion saved by private sector employees in their Employees Provident Fund (EPF) and Employees Trust Fund (ETF) accounts will not be utilised for unnecessary purposes as claimed by certain employees unions, Labour, Relations and Productivity Promotion Minister Gamini Lokuge assured last week.

Minister Lokuge told the Sunday Observer that the existing EPF Act was passed by Parliament in 1980 and amended in 1993.

"Since no amendments have been added to the EPF Act after 1993, we will make amendments to the existing Act at the next Budget to extend more benefits to EPF and ETF holders in future," he said.

Rejecting claims made by trade unions, the Minister said the Rs. 850 billion of deposits in the EPF and ETF accounts are maintained by the Central Bank and the safety of these deposits is guaranteed.

He assured that this money will not be used for purposes other than buying Treasury Bills to swell the account.

Referring to amendments to the existing EPF and ETF accounts, Minister Lokuge said the NIC numbers of employees would be used as their EPF and ETF numbers in future to eliminate irregularities.

He said employees could also withdraw their ETF and EPF deposits in full without having to wait a long time after their retirement.

EPF holders could also obtain a 30 percent housing loan from their EPF balances and for medical expenses.