Nambawan Super Limited says it cannot pay out exiting members whose employer contributions have not been paid by the State from the contributions of other members.
CEO, Paul Sayer, said this when asked by a member from the Western Highlands Provincial Government.
During NSL’s employer conference recently, the fund was asked by members on the outstanding employer contributions owed by the state, which is worth over K2 billion.
Jim Oki, the Human Resource Executive Manager with the Western Highlands Provincial Government told NSL that 33 staff will be retired, with 17 confirmed to go in 2018.
However, they want confirmation that all their unfunded employer contributions will be paid before they do so.
Oki said if the state has failed to pay that component, then an arrangement could be made were the retirees are paid from other contributions then the fund could replace when the government pays up.
NSL CEO, Paul Sayer, said while he sympathised with the members plight, what Oki proposed was legally and morally wrong.
Sayer announced the actions the fund has taken such as court action which has resulted in a court order compelling the state to pay over K230 million for members who exited as of March 2016.
He also informed them the ongoing discussions between the Government and NSL on alternative arrangements to settle the outstanding unfunded K2 billion.