Nasfund notes rise in withdrawals
By DALE LUMA
THE National Superannuation Fund (Nasfund) has seen an increase in withdrawal payments with a total estimate of K113.85 million paid to members within the last three months.
Responding to queries from The National, chief executive Ian Tarutia said 87 per cent of total withdrawal payments were for temporary unemployment (13 per cent) or fully exiting from the fund (74 per cent).
Tarutia said the fund had not paid any Covid-19 relief to its affected members but had received 180 Covid-19 early payment application forms totalling over K311,000.
“I can confirm this year, the fund has seen an increase in withdrawal payments to members since May,” he said.
“From April, a month after the SOE (state of emergency) announcement, withdrawal payments increased by 13.8 per cent equating to K32.5 million for the month of May while June withdrawal payments increased by 30 per cent to K43.7 million. At the end of July, the fund paid K240.8 million to members compared to K221.41 million which is an 8.5 per cent increase compared to the same period in 2019.
“We have not paid any member Covid-19 relief as announced by Government, however, we have received 180 applications totalling over K311,000 in anticipation of parliamentary approval down the track.”
Tarutia said the fund also expected withdrawals to further increase as unemployment numbers went up which the fund was prepared for.
He reminded members that their superannuation savings was a long term investment and had to be accessed as a last resort.
“Members must weigh the short term benefit against the long term opportunity cost if savings are withdrawn early.” He added that less than one per cent of its active membership base, who had registered under the pending Covid relief arrangement had lost their jobs as a direct result of the coronavirus.
“Approximately three per cent of active membership base have lost jobs because of non-Covid-19 related reasons,” he said.
“The closure of the Porgera mine, is a case in point.
“Over 4,000 contributors, either as employees of Barrick or sub-contractors must now look for alternate means of employment.”
11 comments
Tokim ol Barrick Employee go rausim olgeta na make sure Nasfund impose that tax on their Nasfund savings like the rest of us. They are not special. Everyone is affected. If you give tax holiday to ex Barrick employees, I want mine as well. BARRICK EMPLOYEE Kisim salary na sa Kam show off stap lo break time, tromoi lo buai daka, bia na failum ol Meri. Now yupla kalapkalap olsem pato. Kisim time.
Non of your business George.
George this is pure jealous, if you can not make/achieve things in life, wait for your opportunity to rise, when you see others are blessed, appreciate them, how they use their money, this is none of our business, its always good to make good points in the media….
George, your comments are nonsense and irrelevant. Think and talk like an educated Papua New Guineans. PNG has moved on with the upcoming generation and our way of thinking and analyzing things have changed. We don’t want to leave anyone behind, let’s join the team start speaking positive comments to our beloved country man and woman.
George none of your business to talk about Barrick and it’s employees. That’s pure jealousy and childish..
The government should give approval for NASFUND to pay those members who are seeking covid-19 relief assistance.
George, first of all it is non of your business. The CEO of nasfund is just telling the members via media how the fund is doing as a direct impact of Covid19. nasfund belongs to the hard working private sectors and this information is timely to the contributors. What the CEO is trying to imply is that members must think of their long term benefit opportunity rather than short term.
I do not understand why members need to withdraw their savings. I have been made redundant in 2013 and since then I have been a non-active contributor. I have not withdrawn my money since then but my savings is growing due to interest paid annually.
SPK, very wise man. That is what all Nasfund members who don’t need their monies right away should after leaving employment.
Lets forget about George and his personal views, as we read from the report by Nasfund CEO, it is evident that the Government has not honoured it’s commitment to the financial institutions so that they can in return assist our people who unfortunately lost their jobs due to Covid-19. This government seems to be talking a lot but please put words into actions now.
Pyeng Lee you hit the nail right on the head. The glaring fact I take from this article is the CEO telling the unfortunate members who applied for covid relief that their application cannot be processed until and unless Parliament enacts it into law. The PM had promised this from day one of this pandemic but so far Parliament and NEC have dragged their legs in making it become a reality for the poor unfortunate members who are without a job now due to covid-19.
Politicians need to get their act in order and do the right thing by the little people who are bearing the brunt of this pandemic. Rather than sit n your comfortable offices on your backsides get up and do something worth your while.
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