Nambawan Super Limited (NSL)

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.

NSL Board Chairman, Anthony Smare, says members must decide if they want to sign up for such a scheme, but warned it will have a significant impact on their savings.

He made the suggestion following a recent statement by Public Services Minister, Elias Kapavore, who called for a look into the proposed scheme.

During the announcement of NSL’s 2018 financial performance, Smare said the suggestion made recently to make it mandatory for public servants super contributions to pay for this health insurance was concerning.

NSL Chairman, Anthony Smare, is now calling on the retirees to see them so they can settle the outstanding payments.

NSL has begun the process of allocating payments to members who exited in 2016.

“Obviously the government has been impacted by an earthquake, low commodity prices, but we’re seeing a flicker of light with the economy. There are some good things starting to happen and it’s also translating into the unfunded.

“The Government has paid us in the last two months, K95 million,” said Smare.

He said this in response to a proposal for the fund to acquire interest in the SOEs to settle more than K2 billion in unfunded superannuation by the state to public servants.

Duma said if a company is to take up equity in SOEs, it should be PNG companies with a track record.

“I wouldn’t rule that out. Namabwan Super looks after the interest of our people and they are a national institution, so it would be better off having a national institution taking up equity in some of our SOEs because the money stays with us, these are our companies.”

NSL board chairman, Anthony Smare, said one of the long term options is securing assets in State Owned Enterprises.

Smare said their current immediate concern is securing the court ordered payment of K230 million for over 5,000 members who exited the public service since March 2016.

Smare and CEO Paul Sayer said one of the options to settle the unfunded K230 million is a Government bond.

Paul Sayer a leading Australian Superannuation expert has been appointed by the NSL Board following a stringent identification process.

The NSL Board says Sayer was recognized as the best-placed person to lead the K6 billion into the next stage of its development,

In a media conference in Port Moresby, Board Chairman, Anthony Smare, announced the appointment of Sayer in the presence of members and senior NSL staff.

This was revealed during NSL’s employer conference held in Port Moresby on Friday.

NSL Manager Legal, George Koi, during his presentation on ‘unfunded liability said they estimated around K2.1 to K2.2 billion in employer contributions is owed by the State for many public servants.

He said they range from teachers to members of the disciplined forces.

Koi said after a reform in 2003, the State was required to contribute 8.4 per cent as employer contributions towards public servants superannuation’s.

This was revealed by NSL Board Chairman, Anthony Smare, when announcing NSL’s 2016 result.

He says proceedings were filed in late February to recover K130 million that is owed to exited members.

Despite the court action, there are already discussions between NSL over the outstanding amount.

“We’ve also had positive discussions with state looking at a number of different options to address this K130 million they owe our exited members,” Smare said.

Members from both the public and private sector are elated with the result and said it was the best news in a while.

Martin Kenehe, the PNG Teachers Association longest representative on the NSL Membership Committee tells Loop PNG that this is the best news for 58, 000 teacher members around the country.

He said teachers for too long have worked in terrible conditions and have had to put up with many issues of salaries and entitlements and the news will alleviate some of those issues.

The announcement was made today by NSL Board Chairman, Anthony Smare, in front of members, NSL staff and the media.

Smare said despite the challenging economic conditions of 2016, NSL was able to generate a 44 percent increase in profit from K280 million in 2015 to K404 million last year.

"The 9 percent crediting rate will be applied to members’ balances over this coming weekend," he said.