Leave funds for rainy days

THE mandatory fortnightly superfund contributions by members are for retirement and should not to be touched before the real rainy days.
The executives of the various superfunds are well aware of this but it is quite surprising to learn that they are right behind the foolish idea by the Government – encouraging members to access their funds early – claiming this is the rainy day.
Yes, there exists the Covid-19 pandemic that is badly hurting PNG’s economy and employers are forced to lay off employees.
However, many employees would have faced hardships and already experienced life in between employment and they would have survived without touching their contributions.
If they have to this time, they can within the provisions of the superfund regulations.
The Government and superfunds are preaching disinformation targeting the superfund members.
The statement by the Treasurer in Parliament proclaiming that “the rainy day has come” is disinformation to coerce employees that are laid off.
This is not the rainy day superfund savings are meant for.
The superfunds have announced that superfund payments to the affected members will be tax free.
The superfunds seem to have forgotten overnight the regulations that they are entrusted to advocate.
The purpose of encouraging fund members to withdraw early from their savings does not seem to be for the employees to get through the period in between employment; but is devised to contribute towards the government’s economic stimulus package.
Of course this will contribute towards the sustainability of PNG’s economy.
The superfund pay outs will only increase cash economy within the little communities the fund members are located.
This is to say that the affected members would be exposed to unproductive use of the funds because this isn’t a good time to start a business or initiate some form of income generation activities to tangibly contribute toward stimulating the economy as anticipated.
The Government and the superfunds are encouraging the members to go withdraw their funds and eat up; and nothing more.
This is in fact a real rainy day for PNG as a whole so why can’t the government seek loan to support employees that are laid off, example a six months equivalent wages; or charter boats and planes to have people who desire to return to the villages including the laid off employees?
Everything is in the village.
The government needs to demonstrate to its people that it is a caring government and this should be done in a tangible manner, in which the people can see with their eyes and feel in their skins.
Wake up, go get the loan this time for the people and stop mingling around with the hard working tax payers’ little left over cash reserved to use when the real rainy days come!
MPs should not support the proposed amendment to the Superannuation General Provisions Act to accommodate the government’s idea that not a single superfund member has thought about.
If this component of the economic stimulus package is to go ahead and the amendment is introduced in parliament, the amendment must also include elimination of tax on employers’ contributions and interests.
Wouldn’t this be a bit fairer?

KFP,
POM