Call to deregulate super funds

 A CALL has been made for deregulation of superannuation industry to allow other licenced financial institutions to provide similar services. 

The call came from Goroka-based Alekano Savings and Loans society general manager Reuben Elija. 

He stressed that allowing only three main providers of superannuation was not good enough. 

Superannuation is an organisation where funds are deposited into an account to grow typically without any tax until the contributor’s retirement or withdrawal of the fund.

“Contributors both employers and employees must have a variety of choices to make, especially the service they deserve,” he said. 

Elijah said the current major superannuation funds were too investment- conscious that they forgot the very basic needs of their own clients. 

“These super funds are not looking at providing loans to their customers, for instance, to buy homes on 100% financing. 

“Instead, they use the funds to invest in big properties. 

“This would result in financial returns but not towards the social returns on the livelihood of members and contributors.”