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NAMBAWAN Super Limited chairman Sir Nagora Bogan has welcomed
the Government’s commitment to settle its unfunded
superannuation liability.
On Tuesday, Finance and Treasury Minister Patrick Pruaitch
announced the allocation of K250 million in the K1.6 billion
Supplementary Budget towards partial settlement of its unfunded
superannuation liability.
“This is a significant milestone since the formation of a
superannuation scheme in PNG that the State has contributed
superannuation as its employer share towards its member
employees,” Sir Nagora said.
Nambawan Super Limited (formerly POSF Limited) will receive K250
million from the Government to settle part of its unfunded
liability from proceeds available from the State’s unbudgeted
budget surplus.
As the largest registered member of Nambawan Super, the
Government currently owes an estimated K1.6 billion to the fund
as superannuation benefits for its employees.
So far, Nambawan Super has been paying out exiting or retiring
members from its own funds and invoicing the Government for
reimbursement.
In this week’s budget, the Government announced that it will use
part of its K1.637 billion in unbudgeted budget surplus (largely
due to higher than budgeted tax revenues from the mining and
petroleum sector) to reduce its unfunded superannuation
liabilities.
Sir Nagora explained that the unfunded liability represented the
employer’s contributions for public service members of Nambawan
Super and did not involve or relate to other members of the fund
who belong to independently funded statutory authorities and
agencies as well as private sector organisations.
“The State currently carries an estimated unfunded
superannuation liability of K1.6 billion and with this announced
settlement; the States liability will reduce to K1.35 billion,”
Sir Nagora said.
“This is a strong and visible sign of positive economic times
that our country is currently enjoying.
“It is also a sign of confidence the Government has in us as we
play a crucial role in being the trustees or custodians of
retirement benefits for the public servants.”
 
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