Discrepancy in interest paid to EPF members: SC moved by lawmaker

By Shamindra Ferdinando

SLPP National List MP Gevindu Cumaratunga and member of Uththara Lanka Sabhagaya has moved the Supreme Court seeking equal treatment to all members of the Employees Provident Fund (EPF).

Cumaratunga, who is also the President of Yuthukama National OrganiSation has acted in terms of Article 126 read with Article 17 of the Constitution.

The apex court’s intervention has been sought on the basis that EPF members were paid 9% interest for 2022 in terms of the EPF Act No 15 of 1958 whereas members of the Central Bank Provident Fund received 29.27% in the same year. However, with regard to Employees Trust Fund (ETF), there hasn’t been any discrepancy with all members receiving 8.75% in 2022.

Lawmaker Cumaratunga has told the SC that after an inordinate delay State Finance Minister Shehan Semasinghe on Nov 07, 2023 disclosed the difference in interest payments made to EPF members and the Central Bank group. According to the civil society activist, the questions regarding EPF interest and related matters were submitted to parliament in July 2023.

The petition named the Central Bank as the first respondent followed by the Governor of the Central Bank, Attorney General, State Finance Minister and Commissioner General of Labour as respondents.

The petitioner was represented by Attorney-at-Law Sawani Rajakaruna.

MP Cumaratunga said the State Finance Minister’s declaration that the difference in EPF interest was primarily due to the difference in the return distribution policies of each fund was flawed and couldn’t be acceptable.

Lawmaker Cumaratunga questioned the very basis of the declaration that the EPF was the most caring superannuation fund in the region to ensure sufficient benefits to its members. He has brought to the SC’s notice that in the year EPF members were paid 9% while Central Bank members received 29.27%, annual interest, while the inflation stood at a staggering 46.4%

The petitioner requested the SC among other matters to transfer /credit Rs 21,000,000,000 that had been wrongly transferred to the Profit Equalization Fund, to the profit available for distribution and transfer/credit Rs 29,000,000,000 from the profit Equalization Reserve for profit available for distribution. The petitioner pointed out that this would enable the re-calculation and re-fixing of interest payable to each EPF member at 11 % or above for 2022. The petitioner also requested that the interest paid to Central Bank members of the fund should be re-fixed at an equitable rate as deemed by the SC.