Nambawan Super Limited says it is seeking regulatory reform to support housing for members.
NSL Board Chairman, Reg Monagi, said housing is a major concern for the Fund’s members.
“At the moment the law only allows them (members) to withdraw 40 percent of the employee portion of the contribution towards purchasing of a house or building a new home. And that creates an affordability issue for members because 40 percent generally is not sufficient for you to get a loan and build a house that’s probably K400,000 or K500,000. It’s very expensive. And it’s difficult to build a reasonable home with K200,000 right now,” Monagi said.
The Chairman said he will raise the issue with the Bank of PNG.
“So if we are going to do something about that then we are going to have to go to the regulators and make some changes to the law to allow that to happen.”
The Superannuation Act is currently being reviewed by a task force led by the Bank of PNG and includes the Department of Treasury, super funds and industry stakeholder.