State owes public servants an estimated K2 billion

The Government owes an estimated K2 billion in unfunded superannuation contributions for public service members of Nambawan Super Limited (NSL).

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.

However, between that year and 2009, the state did not fully meet its end of the bargain, and only provided partial payments.

It was only after 2009 that the state began paying in full employer contributions, but recently fell behind again.

“This is not an issue for those in the private sector. This is only for those of us in the public service, and for those of us employed prior to 2009. So for teachers, our service men in the corrections service as well as the police force are most of those affected in that category.

Koi added that between November 2014 and November 2015, NSL paid and the state didn’t pay their bill totaling to K135 million.

He said of the K135 million outstanding, only K75 million has been received while K66 million is yet to be paid to the fund.

However as of January 2017, NSL has calculated again the outstanding which has increased again to K113 million.

NSL Chairman, Anthony Smare, announced last month that the fund had begun legal proceedings against the state to recover the funds on behalf of its members.

Koi clarified that NSL is seeking orders to determine the exact amount owing to the fund and orders for the state to pay.

In the meantime, NSL is negotiating with the state to find an amicable solution to pay the outstanding claim.

Cedric Patjole