Superannuation review in Lae

A consultative workshop on the review of superannuation and life insurance concluded at the Lae International Hotel this afternoon.

Facilitated by the Bank of PNG, the two-day forum started on Monday and was attended by financial institutions, government agencies and retirees.

The first series of the consultative workshop on superannuation and life insurance review follows the Treasury Minister’s approval on August 19th, 2020, to establish a Superannuation and Life Insurance Review Committee (SLIRC) as per the Bank of PNG Governor, Loi Bakani’s, request.

The independent five-member committee, led by chairman, Erastus Kamburi, are undertaking the review with the aim of improving the efficiency of the superannuation and life insurance industries. They also aim to ensure that the legal framework of the industries aligns with the Government’s Financial Sector Development Strategy 2018-2030 and other relevant policies.

The SLIRC members are:

  • Erastus Kamburi (Chairman);
  • Lady Aivu Tauvasa;
  • Ian Balfour;
  • Senthamangalam Venkatramani;
  • Peter Aitsi, MBE (Deputy Chairman); and
  • Sir Nagora Bogan, KBE.

Kamburi said the first review was undertaken in 2002, where a number of amendments were made to the superannuation legislation.

“And then a second major review was done in 2006,” he said. “This is the third one.

“About 15 years has passed since the last review was done. A lot of things have happened, a lot of things have changed in relation to banking, finance, in relation to how our people perceive superannuation and retirement benefits.”

Since the 2016 review, BPNG said both industries have grown considerably. As at 31 December 2020, the superannuation industry had a total asset base of more than K15 billion, while the total Gross Written Premium of the life insurance industry has grown close to K100 million.

This is why the government is conducting the review to consider the best way forward to protect, grow and sustain these sectors.

A discussion paper has been uploaded to the Bank of PNG website, calling for stakeholders to provide comments and observations. Submissions to the discussion paper are due by the 26th of October, 2021.

After Lae, consultations will be hosted in Madang and Sepik.

The committee is required to present a report with its recommendations to the Treasury Minister on or before the 31st of December, 2021.

(Chairman of the Superannuation and Life Insurance Review Committee, Erastus Kamburi)

Carmella Gware