TeamLease gets Govt nod to set up independent PF Trust in one of the largest PF migrations in India. First staffing company in the country to achieve this; TeamLease Employees PF Fund to have corpus of around Rs 100 crores
TeamLease Services Private Limited , India’s largest staffing Solutions Company, today announced that the Department of Labor and Employment under the aegis of Ministry of Labor has granted them permission to run an independent PF Trust for it’s employees. While the corpus of the PF fund will be between Rs 80 cr to Rs 100 cr, close to 1.5 lacs employee records will be transferred in from the Regional Provident Fund Commissioner's office at Bangalore.
Commenting on the development, Mr N Venkataraman, CFO, TeamLease Services Pvt Ltd, said, “We have been working on this for this since early 2006 and it is a significant milestone for TeamLease. The Ministry, Central Provident Fund Commissioner and the office of the Regional Provident Fund Commissioner, Bangalore after thorough due diligence on TeamLease and it's capabilities to maintain and monitor a Trust of this magnitude gave us the permission. Transparency of the Fund’s operation will be apparent. Subscribers to the Fund will access to their account over the internet and through our toll free dial in facilities to our call center.”
Fund management will be done by India-Life Capital in line with the Government and Tax regulations in this regard. The Trust will invest only in high quality bonds and debentures. TeamLease expects to do close to 20,000 settlements in a year, which will again be one of the largest in the private sector. TeamLease currently has about 72,000 employees on its rolls and has plans to add another 30,000 employees by end of this fiscal year.
India-Life, a sister concern of TeamLease and one of the Leading Advisors on PF Trust Management and Retiral Benefit Consulting in the country, was instrumental in getting the PF Trust established. India-Life supported TeamLease in regulatory consulting and there-by getting the exemption and assistance in migration from RPFC. Says Mr Amit Gopal, Vice President, India-Life, “Helping TeamLease obtain the PF exemption ties in with our competency of helping employers establish and manage retirement plan trust funds. We are now looking forward to helping TeamLease manage their provident fund trust.”
“The turn around time now for settlements will be around 10-15 days, which otherwise takes 3-4 months. We are in talks with a vendor to install state-of-the-art software to manage and monitor PF Trust accounts and investments,” added Mr Venkataraman.
The Trust will be a separate legal entity, audited by leading chartered accountants and managed by Trustees comprising nominees of the employer and employee. Online statement generation, query resolution over a call will now be available to every associate of TeamLease – past and present.
Sourced From: Adfactors Public Relations Pvt Ltd
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