Public Servants who have retired as of December 2015 will not get their full superannuation payout until the State pays its employer contribution to Nambawan Super says chief executive officer Garry Tunstall.
The National Government as the employer of all public servants still owes the superfund K63million of unpaid employer contributions.
According to the CEO, the National Government only paid K75 million of the outstanding balance this year.
“We will be able to pay the members when we receive the money, the reality is we haven’t received all the money that we are owed,” Tunstall told members during its members conference today.
“What happened was the arrangement has traditionally been that Nambawan Super obtained money from the government and then pay the (retiring or exiting) members.
“The Government was late in paying the members, so Nambawan Super would pay the member and then invoices the government and gets paid by the government, which happened over the years without difficulties.
“In the last two years the State stopped paying, so Nambawan Super was draining its other members’ funds to pay exiting members, but it cannot continue to do that.”
The NSL Trusty Board made the decision on December 1, 2015 to stop paying retiring public servants until its employer settles the outstanding employer contributions.