K100m payout

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MORE than 2000 former civil servants who had retired between June 2017 and April last year have finally received their entitlements after the Government paid Nambawan Super Limited the K100 million it owed them.
The superfund’s chairman Anthony Smare yesterday advised the 2100 former teachers, nurses, police officers and others to collect their dues from the Nambawan Super Limited (NSL) branches.
He said the K100 million was what was owed to the former public servants who had retired between June 2017 and April 2018.
For the 1525 who retired between May and December last year, the Government is yet to pay about K70 million it owes them.
The Government has gradually been paying off what it owes those who had retired in past years.
Smare said since last July, the Government had paid K250 million to settle “the unfunded liability for more than 5100 retired public servants”.
“This latest payment (K100m) will enable 2100 former teachers, nurses, police officers and other public servants to access their remaining superannuation benefits that the State owed them,” he said.
The Government had included K146 million in its 2018 Supplementary Budget for the purpose – to be paid in two instalments.
“We anticipate the remaining committed funds to follow soon,” Smare said.
In the 2019 budget, the State allocated a further K150 million towards the superannuation for public servants who retired late last year, and those who will retire this year.
“At the close of 2018, after accounting for this K100 million payment, the State owes K70 million to the 1525 former public servants who retired between May and December 2018,” he said.
“If the two commitments of the supplementary budget and ongoing payments for 2019 are met, the State will have cleared their unfunded contributions and established a sound process
and practice that if maintained would prevent a backlog from recurring.
“This is significant progress as a result of sustained dialogue between Nambawan’s team and representatives of the State.”
He thanked the Government for the progress made to address the issue.
After the court last year directed the State to pay up what it owed former public servants who were members of NSL, talks began with State officials to find ways to progressively clear the arrears.
Nambawan Super manages superannuation funds of about K7 billion for more than 185,000 members in both the private and public sectors.