The Fund constitutes one of the largest pension organization operating in Cyprus in respect of the number of its members (13,473) and also the greatest Fund of the private sector based on its portfolio value.
The Fund operates in accordance with the provisions of the Provident Fund Law of 1981 and its subsequent modifying laws and also with the new Law 146(I) of 2006 passed by the House of Representatives on the 17th November 2006 provides for the Establishment, Registration, Operation and Supervision of the Funds for Occupational Retirement Provisions. The Provident Fund is being financed by the Employers (Hoteliers) and its Members (Hotel Employees) with the purpose of paying pecuniary benefits to such members in case of retirement or termination or employment.
The contributions of the Members are credited to the Account A of the Fund while the contributions of the employer are credited to the Account B. The total value of the Fund Portfolio came up to EUR €259,047,306 on the 31st December 2009. The annual inflows in respect of contributions made by both members and employer come up to approximately €19,6 millions per year.
The contributions of Members and Employers and the net incomes resulting from the management of the assets of the Fund are also credited to the Accounts A & B at the end of each calendar year.
The Fund is being managed by a Management Committee comprising of thirteen members, (hereinafter the "Committee") in which all the concerned parties participate. Seven (7) of the Members of the Committee are appointed by the Employers while the rest of the members come from the part of the employees (the Members) who are represented by the two greatest unions (PEO - SEK). The Committee, in its absolute discretion, determines the investment strategy and manages the assets of the Fund as specified in the articles of association of the Fund.
The Fund itself employs on a permanent basis an accredited trustee holding the office of General Manager of the Fund and also five (5) employees responsible for the smooth operation of the Fund on a daily basis.