Retirement fund giving 11pc back to members

The National Business

The Trustee of the Defence Force Retirement Fund has announced its 2017 financial results with an interest crediting rate of 11.43 per cent, according to the board chairman.
“The results have not been as good as those for 2016, however, the fund has still been able to post some positive results,” said Comrade Trustee Services Limited board chairman Moses Koiri.
Comrade Trustee manages the Defence Force Retirement Benefit Fund (DFRBF).
The fund’s 2017 results include:

  • A total net surplus after tax of K47.18 million (K55.48m in 2016);
  • total net assets of K563.79 million (K516.62 in 2016);
  • Fund growth of 9.62 per cent (6.8 per cent in 2016);
  • Interest crediting rate of 11.43 per cent (17.8 per cent for 2016);
  • Consumer price index rate of 5.1 per cent (6.8 per cent in 2016); and
  • Increased membership of 9 per cent (5553 current members).

Koiri said despite the poor economic conditions the trustee has maintained prudent management of its investments. He said the financial statements were audited by Ernst & Young.
He said K31.87 million was credited as retained earnings for the fund’s pension reserve to continue funding pensions of members.
He said other achievements include the construction of houses for the fund’s Toea Homes Home Ownership Scheme, providing opportunities for members to secure loans from Bank South Pacific to buy houses, and a website for members to access their account details.
The announcement of the returns was held yesterday at Comrade Haus in Port Moresby. It was attended by the trustee’s chief executive John Auna, PNG Defence Force commander Brigadier-General Gilbert Toropo, and other senior officers of the military.