ETF Will contributors receive a fair return ?
2018-01-24
While activities concerning the Employees Provident Fund (EPF) came under much scrutiny in recent times, its sister fund the Employees’ Trust Fund (ETF) has seldom been discussed. Even when discussed, many have pointed to a looming merger of the two social security programmes, followed by fears of the funds being open to abuse and misappropriation. 
Substantial portions of the ETF investments are invested in gilt-edged government securities; and yet many have opined that its beneficiaries are not receiving the highest available returns. Established under Act No-46 of 1980, the Employees’ Trust Fund Board (ETFB) initially commenced operations under the Labour Ministry. As of June 2017 the ETFB functions under the Ministry of Development Assignments and covers all private sector employees and all public sector employees who are not entitled to the Government pension scheme. With an estimated 79,000 employers contributing 3 per cent of the gross earnings of their employees to the fund on a monthly basis, the ETFB today boasts of a 270 billion fund.
Substantial portions of the ETF investments are invested in gilt-edged government securities; and yet many have opined that its beneficiaries are not receiving the highest available returns. Established under Act No-46 of 1980, the Employees’ Trust Fund Board (ETFB) initially commenced operations under the Labour Ministry. As of June 2017 the ETFB functions under the Ministry of Development Assignments and covers all private sector employees and all public sector employees who are not entitled to the Government pension scheme. With an estimated 79,000 employers contributing 3 per cent of the gross earnings of their employees to the fund on a monthly basis, the ETFB today boasts of a 270 billion fund.
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