10% windfall

MORE than 100,000 contributors of Nambawan Super Limited (NSL) go into the Easter holiday with a timely gift from their fund.
They will have credited into their accounts a 10% interest on their savings, their reward from a handsome profit the fund made last year.
This was announced in Port Moresby yesterday.
Managing director Leon Buskens told reporters in a media conference yesterday: “As I am speaking, staff members are working on crediting members’ accounts and, by next Monday, all accounts should be credited and completed.”
The bonanza for NSL contributors continues a super performance by super funds in the country.
A month ago, Nasfund announced a 15% interest for its members from its profits last year.
Announcing the good news yesterday, NSL chairman Sir Nagora Bogan said the 10% dividend was approved by the board for crediting to 113,546 members after the superfund declared an after-tax profit of K191 million for last year.
Sir Nagora said the 10% interest would also include the retirement saving accounts (RSA) while the board had also approved an interim interest rate for members leaving the fund this year. He said the income of K249 million was derived from the fund’s investment, largely attributed to good performances  in the interest earnings, property revaluations, international share and exchange rate benefits arising from the drop value in the kina.
Sir Nagora told reporters that offset against a headline inflation rate of 5.7%, the declared interest rates represents a real return of 4.3%.
He said for the seventh year in a row since the reforms, the fund has delivered double-digit interest and, most importantly, real returns to members.
He stressed that determining the annual interest rate was a very serious decision for the board of directors.
“The board makes sure proper accounting standards are met.
“It also factors in economic forecasts for the next few years to make sure it sets aside sufficient reserves to meet the prudential requirement set by the Bank of Papua New Guinea,” Sir Nagora said.
He added that while double-digit interest crediting had been approved for the year, reserves had increased to K74.7 million from the 2008 levels of K66.6 million.”
Horim Piamai, a policeman in Mt Hagen who has been contributing for 20 years, told The National 10% interest was good news.
“I have K60,000 in my saving and when I retire, that would sustain me in the long run though RSA.”
Another contributing member, Dr Oko Pengi, from Wabag General Hospital in Enga province, said the news was good for him.
Meanwhile, directors of the board representing public sector unions – Martin Kenehe (PNGTA), Clement Komu (police), Peter Lungo (CS), and Gabriel Panke and Tau Vali (PEA) applauded NSL for declaring a double-digit interest seven years in a row.
Mr Buskens also revealed that the fund’s total assets increased to K2.83 billion, an increase of K120 million over the 2008 total of K2.62 billion.