Firms urged to comply with rules

By DALE LUMA
MANY businesses do not make superannuation contributions for their workers which is an offence under the Superannuation Act, National Superannuation Fund (Nasfund) chief executive officer Ian Tarutia says.
Responding to queries from The National, Tarutia said there were currently over 60,000 registered companies (most of which are shelf companies) in PNG but in Nasfund’s case, only 27,000 employers were contributing on behalf of 623,000 members.
“I am sure there are many other employers who are not registered,” he said.
“Currently we have 27,000 employers contributing on behalf 623,000 members.
“The Superannuation Act requires employers who are employing 15 or more staff (citizens and non-citizens are counted) must contribute towards their superannuation savings.
“The Investment Promotion Authority through its Registry of Companies has over 60,000 organisations registered on its database. IRC also has a database.
“There is opportunity for more employers to be registered and ensuring they are paying superannuation for their employees.
“Likewise that they are paying the right taxes to the State through IRC.
“A lot of company names are shelf companies.
“That is they are not operational.
“To get a true picture of the number of eligible employers, verification can be sort from IRC or carrying out an actual physical inspection of the business operations.
“If you are employing more than 15 employees and not contributing to superannuation, it is an offence.
“Enforcement and prosecution for non-compliance is done by Bank of Papua New Guinea as the Superannuation Industry regulator. The fines are quite punitive if found guilty of not complying with the Superannuation Act.”