PNG Superannuation Fund Takes Legal Action Against Government For Payments Owed

Nambawan Super wants government to provide $35 million in contributions for employees

By Rebecca Kuku

PORT MORESBY, Papua New Guinea (The National, March 3, 2017) – Nambawan Super Ltd is taking legal action against the State on behalf of exited members who are owed the Government’s superannuation component, its board chairman Anthony Smare says.

Smare said 2,715 exited members were owed K113 million [US$35 million] by the Government.

“Despite the court proceedings, the State and Nambawan Super Limited are in advanced discussions, where both parties are working diligently on options to moderate the unfunded liability of the State to NSL members,” Smare saiud.

Smare said that some members wanted to sue the State so NSL took it upon itself to do that because the members would have lost a lot of money; they would have lost all their savings paying for lawyers.

Smare said while the members had not yet received their money, they could be rest assured that the interest rate was building and it was growing.

[PIR editor's note: On March 3, 2017 PNG Post-Courier reported that 'Superannuation group Nambawan Super has put a smile on the faces of its members by declaring a massive profit of more than K400 million [US$125 million]. ... The 165,000 members, most of them public servants, can expect a nine per cent interest in their savings as a result.']

“The nine per cent crediting rate will also apply to the balances of the Retirement Savings Account of retired members as well as the unfunded Government component,” Smare said.

Retired CIS officer Peter Avu said that he was “very happy” with what Nambawan Super was doing for its members.

“We have served our country for 30 to 40 years, dedicating our lives,” Avu said.

“We have been through a lot for this country and the Government must pay what is owed to us.

“Promises after promises, we have waited and we are still waiting.”

The National
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