Laid off members entitled to funds

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SUPERFUNDS members whose employment is terminated by their employer due to business downturn as a direct result of Covid-19 will be entitled to a one-off payment of 20 per cent of the member’s contribution.
The authorised superannuation funds (ASFs) of PNG – National Superannuation Fund Ltd (Nasfund), Nambawan Super Ltd, Comrade Trustee Services Ltd (CTSL) and Aon Master Trust (AMT) – made this known in a statement yesterday.
Nasfund chairman Charles Vee, Nambawan Super chairman Anthony Smare, AMT chairman John Beattie and CTSL statutory manager Sitiveni Weleilakeba, in a statement, said members were only allowed a one-off payment of 20 per cent of the member’s own contribution up to a maximum of K10,000. “This amount would be tax-free to the member,” the heads of the superfunds said.
They described the process as work in progress as it would become effective soon as the appropriate legislative amendment to the Superannuation General Provisions Act is approved by Parliament.
“If the member remains unemployed after three months, they will be eligible to receive a monthly unemployment payment equivalent to 50 per cent of their last monthly salary which is already provided for under the Superannuation General Provisions Act,” they said.
The superfunds anticipate that job losses as a result of Covid-19 will result in benefit payments of more than K500 million over the course of this year.
This is in addition to what is already paid in normal unemployment and housing advance benefits.
“This also includes members who may opt for retirement as employers address the Covid-19 impacts.
“It is expected that while some members will look to utilise these benefits in their retirement savings account, some members will choose to invest in their families, while some may start up SMEs (small-medium enterprises), all of which will help stimulate economic activity as well as increase the level of taxation received by the State.”
The superfunds also guarantee that all pension payments currently being made will continue to the beneficiaries in line with the pension obligations.

8 comments

  • Very good support from the super funds and commercial banks for workers affected due to COVID-19.

    What about the non – banking institutions like finance companies. Many Papua New Guineans borrow/receive loans from this institutions. In fact this companies are making a lot of profit as well just like the banks. Has the Government discussed with these organizations on how they could assist their clients. The superfunds and the banks are coming on good in terms of supporting our people during this emergency period.

    • Those finance companies can only reduce their loan interest rate or won’t be charging loan interest for these two months (SoE)

  • What can the good institution say of the other group-those still working but need money to satisfy the needs of extended family, send family members back to the home village as living in the city/, main centres have high chances of contracting the virus and so forth. The government stimulus package must cover e everyone, not just retiree or those laid-off due to the CV-19 pandemic.

  • Appreciated. However, did the Government of the Day reduced Tax from employees of both the Government & Private sectors??? If so this would help out better!!

  • Its a urgent matter so the parliamentarian had to fast trek the amendment in order to save the employee who are affected by the C-19 SOE.

  • So how far is the government with the approval process such matter should consider priority and not waste time.
    Reducing of tax should be consider too

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