Opa: State owes NSL K2.1 billion

Business, Normal

The National, Tuesday July 31st, 2012

THE state owes Nambawan Super Ltd (NSL) K2.1 billion, according to the super fund’s manager monitoring and compliance, Thomas Opa.
He said this yesterday when commenting on NSL last Friday after he received the K27 million payment from Department of Treasury for its first six pay periods of this year.
Treasury secretary Simon Tosali paid the K27 million to NSL chairman Sir Nagora Bogan at the launching of the automaton of state’s superannuation contribution to Nambawan Super at the Crowne Plaza.
The K27 million is for the state’s contributions (8.4% employer contributions covering the 80,000 public servants for the first six pay periods this year).
“The state has been able to settle its superannuation obligations (employer or state share contributions) for the years of 2010 and 2011, while those in prior years remain outstanding,” Opa said.
“We are now working with the Department of Treasury, Finance and Personnel Management to create a working committee to look into how best the state can settle its superannuation liabilities to NSL totalling K2.1 billion.”
Opa said each fortnight, the employee was deducted 6% from his or her gross fortnightly income, which was then electronically sent to NSL together with the rest of the 80,000 or so public servants on the Alesco payroll system (concept payroll).
The K27 million payment was to settle the state share (8.4%) superannuation arrears for the first six pay periods of 2012.

“The 8.4% employer component, which is commonly known as the state share since the state is the employer, however was not forthcoming until the successful automation was applied on pay No. 07 of 2012,” he said,
“The K27 million payment was, therefore, to settle the state share (8.4%) superannuation arrears for the first six pay periods of 2012.
“Now that we have automated the process, this will become a thing of the past as we now get the 6% employee and 8.4% employer (state share) contributions deposited into NSL accounts electronically each fortnight by the state (Departmentt of Treasury).
“This has already commenced since pay No. 07 of 2012 and the July 27 launching at Crowne Plaza was to signify this milestone event.
“With the electronic payments now underway, we will be able to immediately update member contributions for both the employee and employer (state) contributions at the end of each fortnight, thus, members get up-to-date real time balance unlike before.”
Opa said when a member, especially in the public service, left the employ of the state in the past, NSL calculated the members 8.4% employer component by simply multiplying the members 6% employee contributions by 1.4 to determine the 8.4% contributions inclusive of the accumulated interest accrued before the member was paid out in full.
“The fund then invoiced the state for reimbursements,  hence,  the members from the public service were never disadvantaged as they were paid out in full all at once,” he said.