EPF: Administration, investment and release of funds to members

The Employees' Provident Fund (EPF) informed its members that in terms of the Employees' Provident Fund Act, 15 of 1958 the Monetary Board of the Central Bank acts as the custodian of the funds lying to the credit of the EPF members.

The monies received from the employers as per law are maintained in individual member accounts. On behalf of its members, EPF maintains only two types of accounts, one which receives contributions regularly and the other which does not receive contributions regularly. The monies in these accounts, lying to the credit of the members, are held by the EPF as a current and future liability to be paid to the member or to the member's nominee at a future time. These monies are invested by EPF mainly in government securities and other instruments of investment and yearly interest is accrued to the accounts.

According to law, the following are identified as the only instances, under which funds could be released to the members,

* When a member reaches the age of retirement,

* When a female member ceases to be employed after her marriage,

* When a member ceases to be employed due to ill health causing permanent and total incapacity to work,

* When a member migrates to a foreign country,

* When a member takes up pensionable employment in the government,

* A member ceases to be employed either due to establishment, take over, carrying on of business by an order of incorporation or upon incorporation of a public corporation or the member ceases to be employed in a public corporation due to retrenchment or dissolution of such public corporation.

Also, in terms of the Employees' Provident Fund (Amendment) Act, No. 42 of 1988; the Commissioner of Labour can direct the Monetary Board to recover any outstanding amount of a housing loan obtained by the member under the EPF scheme.