Posted By Staff Reporter
Nambawan Super has put on hold payment of the unpaid employer contributions for exiting public servants.
The current Member Funds of Nambawan Super total K5.1 billion. The Government owes Nambawan Super a further K 2.0 billion which represents unpaid employer contributions for public servants before 2009. This impacts the majority of Fund members.
Historically, as public servants exited the Fund, Nambawan Super paid these unfunded amounts on behalf of the State. Nambawan Super has then periodically invoiced the State to reimburse the Fund in respect of these payments, which the State has usually honoured. However, since November 2014, the Government has not reimbursed the Fund and the current outstanding balance exceeds K133 million.
The Board and Management of Nambawan Super have become concerned about the financial exposure of, and legal implications to, the Fund and its members.
The Nambawan Super Board resolved to pay only the fully funded balance in the members account on exit effective from Tuesday 1 December 2015.
Going forward, in order for the eligible public servants to receive their full contributions on exit, the State will need to reimburse Nambawan Super the K 133 million already paid to public service members who have exited since November 2014. The State will also have to pay in advance for all future exits of eligible public servants before they are exited from the Fund.
The Board and Management of Nambawan Super have had discussions with representatives of the Treasury department regarding the matter and will continue to work with Government officials to resolve the situation.
Papua New Guinea daily News updates
Let Your Voice be heard: Submit your news articles, commentaries, letters , Photos, Media Releases etc to us on this email: email@example.com
Subscribe for News Alerts
Get Breaking News Headlines through Email: Subscribe Now