Nafund’s expenses last year was 4pc below budget: Officer

THE National Superannuation Fund (Nasfund) has recorded another good year in 2021 with expenses four per cent below budget and 13 per cent profitability exceeding budget.
Presenting at the employer conference in Lae last week, head of special projects Judah Waffi said the company closed off the year with a net profit of K363.3 million.
“We had a cash income of K423 million compared to a budget of K407 million,” he said.
“Our valuation income was K72 million against losses of K58 million in 2020.
“Fund expenses was K64.5 million compared to a budget of K72 million.
“Total asset of the fund grew to K6.303 billion while net assets grew to K5.94 billion.”
“Employer receipts coming through were K589 million compared K574 million previous year and an increase in member withdrawals of K586 million compared to K469 million paid in 2020.”
Waffi said the fund achieved all-time highs last year, with better performance from over the last five years despite the internal and external challenges overall affecting the financial year.
He assured employers that the fund had over the years, managed to keep its crediting value higher than the inflation, to give maximum return to its contributors.
“Average inflation since is 5.18 per cent whereas the average crediting rate to our members has been 6.07 per cent,” he said.
Waffi said the biggest impact to the fund’s savings was the credit effect where the Country Sovereign Rating downgraded to negative from stable; this was apart from foreign exchange rationing, the Covid-19 impact, labour shedding across extractive sector and the government’s budget deficit.
Waffi said the opportunities that came with these challenges to grow the fund was targeted economic sector engagements through MOUs with specific Special Economic Zone sectors and identified provincial governments, voluntary saving campaigns, informal sector coverage.
He said the fund had over the year registered 52,625 new members, a three per cent increase in total membership to 622,938 members; 137 new employers registered resulting in a 4.8 per cent increase in total employer base to 2,700 employers.