The Ceylon Federation of Labour (CFL) has filed a strong objection against the proposed amendments to the Employees Provident Fund (EPF) Act.The federation, which is an organisation bringing together trade unions in the private, semi-government and co-operative sectors of Sri Lankahas urged the authorities not to introduce any proposals in the amendment that could eat into the balance of members of the EPF and ultimately leave only a meagre sum at retirement to the individual.
“It is the considered view of the CFL that the original objective of the EPF which is to provide tax free benefits for the individual worker at retirement should not be harmed in any reform of the EPF but it appears that your amendments allow too many pre-retirement withdrawals,” an extract from a letter, dated October 4 sent by CFL secretary-general of CFL, S Siriwardena and addressed to Labour Relations and Productivity Promotion Minister Gamini Lokuge said.
The letter said the Federation does not object to the stipulated withdrawal for housing purposes but are certainly opposed to the allocation of EPF funds to build ostentatious secretariat urging the Minister to find other means to fund projects of this type.
“The proposal to allow withdrawals in respect of medical wants is not welcomed as it overlaps with the medical facilities provided by the Employees Trust Fund (ETF).We suggest that the medical benefits proposed by you be undertaken by the ETF by widening the scope of the medical benefits offered by them at present.”
The letter added: “The CFL considers your proposals to have an insurance and pension scheme built into the EPF as ill conceived and these are best operated as separate schemes outside the EPF. However, we are unable to comment further on these proposals as details are not within our knowledge.”.
Meanwhile, CFL has also alleged that the Minister had proceeded with the amendments to the EPF Act by obtaining cabinet approval for the proposals without any consultation with the National Labour Advisory Council. (NLAC)
“You would recall at the last meeting at the NLAC, it was agreed that an opportunity would be provided for NLAC to discuss the proposals before amendments to the EPF are made.
“However, we now learn that you have sought and obtained cabinet approval for your proposals,” it said.
“This is most unsatisfactory and we lodge our strong protest against your cavalier attitude towards the NLAC and wish to place on record our objections to the amending Act,” the letter highlighted. (AR)
“It is the considered view of the CFL that the original objective of the EPF which is to provide tax free benefits for the individual worker at retirement should not be harmed in any reform of the EPF but it appears that your amendments allow too many pre-retirement withdrawals,” an extract from a letter, dated October 4 sent by CFL secretary-general of CFL, S Siriwardena and addressed to Labour Relations and Productivity Promotion Minister Gamini Lokuge said.
The letter said the Federation does not object to the stipulated withdrawal for housing purposes but are certainly opposed to the allocation of EPF funds to build ostentatious secretariat urging the Minister to find other means to fund projects of this type.
“The proposal to allow withdrawals in respect of medical wants is not welcomed as it overlaps with the medical facilities provided by the Employees Trust Fund (ETF).We suggest that the medical benefits proposed by you be undertaken by the ETF by widening the scope of the medical benefits offered by them at present.”
The letter added: “The CFL considers your proposals to have an insurance and pension scheme built into the EPF as ill conceived and these are best operated as separate schemes outside the EPF. However, we are unable to comment further on these proposals as details are not within our knowledge.”.
Meanwhile, CFL has also alleged that the Minister had proceeded with the amendments to the EPF Act by obtaining cabinet approval for the proposals without any consultation with the National Labour Advisory Council. (NLAC)
“You would recall at the last meeting at the NLAC, it was agreed that an opportunity would be provided for NLAC to discuss the proposals before amendments to the EPF are made.
“However, we now learn that you have sought and obtained cabinet approval for your proposals,” it said.
“This is most unsatisfactory and we lodge our strong protest against your cavalier attitude towards the NLAC and wish to place on record our objections to the amending Act,” the letter highlighted. (AR)
