In 1996 the government passed legislation restricting the admission of new contributing companies to private provident funds and consequently no new member companies could join the MSPS. Therefore, the MSPS currently serves those contributing companies that were members at the time the legislation was passed as it cannot admit new contributing companies.
Among the contributing companies are some of the largest companies in Sri Lanka both national and multi-national spanning through a cross section of the economy.
In order to register an employee with MSPS, below mentioned steps should be followed.
Under the Rules of the MSPS the employer has to contribute a minimum of 12% and the employee a minimum of 8% of the gross remuneration as defined in the EPF Act at the end of each month following the month in which the deduction is made. Any delays in the contribution payments are subject to penalty as prescribed in the EPF Act.
In the event the employee wishes to change his/her nominee(s).
The Committee spends a great deal of attention as to how the Funds of the MSPS are managed. Firstly all investments are made as prescribed by the Commissioner of Labour under the EPF Act and the CGIR under Inland Revenue Act and secondly as specified under the Rules of the MSPS. As such in selecting the ideal investments the Committee is guided both by the Rules of the MSPS and as prescribed by the statute. It is the uppermost priority of the Committee to ensure that the funds belonging to the members’ employees are absolutely safe and as such all investments must bear zero risk. Once the zero risk investments are selected the funds will be invested in those investments that would maximize the return to the member. According to the Rules the MSPS is permitted to invest up to a maximum of 10% of the fund balance in the equity market and the balance in fixed income securities which is again subject to certain statutorily prescribed limits. All investments in the equity market is managed by a qualified fund manager.
There are sufficient internal controls to ensure that the Funds of the Society are properly administrated as well. The MSPS has a secretariat consisting staff and office of its own to administer the MSPS. The secretariat is headed by a Secretary appointed by the Committee of the Ceylon Chamber of Commerce. Currently there are twelve staff members headed by a Chief Executive Officer. The secretariat is responsible to provide all members services including admission of new members, resignations, and making payments on resignations, retirements, loans, life insurance payments etc.