State paying up to settle super debt, says Smare

By PETER ESILA
NAMBAWAN Super has received K165 million since last December from the State to settle outstanding contributions owed to exited public service members, says chairman Anthony Smare, pictured.
He said the amount owing was K145 million for the period June 2017-Sept 2018 to exited members.
“It is positive progress that the State has been able to make significant progress payments of K165 million, which has allowed the fund to settle those members who exited in December 2015,” Smare said.
“We are now in the process of paying out all 2016 affected members.
“With more recent payments by the State, Nambawan Super is now calling for all those members who were paid by the fund between Jan 1, 2017 and May 31, 2017 to also come forward to validate their details so their payments can be made if they have not done so.
“All payments to affected members will include interest to the date of payment.
“We are appealing to those affected members to contact our call centre or visit our nearest Nambawan Super branch so we can arrange their outstanding payments.”
Smare said Nambawan Super had been working with the State to develop a programme where regular payments were made to settle all of remaining 2017 and 2018 affected members as soon as possible.
“Until such further funds are released from the State, we will not be able to continue to make further payments to those affected members post May 2017,” he said.
“Pursuant to the recent court order in relation to this debt, we are hoping that the State will use any further issue of Government inscribed stocks this year and the proceeds of the recent US$500 million (about K1.6bil) bond to settle in full the unfunded exit arrears in the 2018 calendar year. “Once the arrears are settled, we ask that the State make a commitment to set aside an appropriate amount in each future year’s budget for the ongoing requirements of public servants who will retire in that year so that this delay in payment of member entitlements does not arise again.”
Smaré said the fund’s trustee directors and management team were committed to resolving the unfunded liability issue in full, in due course “so that the current unfunded members who continue to serve the State can plan their retirement with certainty, and can retire with dignity having faithfully served the State”.