Spring Cleaning

Ministry efforts to set up an office of pension reform are already moving ahead, with a tripartite advisory committee to address all stakeholder issues.rn

rnThe joint structure of government, employers and worker unions will thrash out concerns regarding retirement benefits and what is seen as a changing government role in the country
quote s retirement support systems.rn

rnThis office will be vested with the powers to ultimately draw up an action plan and steer through its implementation to address what
quote s been called a looming crisis.rn

rnAs happens now, about 98 percent of funds channelled into Employee Provident and Trust Funds (EPF and ETF), are tied up in government securities.rn

rnOf concern has been that existing retirement funds are not managed in the best interests of the workers, having become a convenient source of funding for governments.rn

rnSuccessive governments have resorted to using these captive sources of funds for deficit financing of mostly recurrent expenditure.rn


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