Super funds acknowledge amendment to support members

THE Authorised Super Funds of PNG (ASFPNG) says they acknowledge Parliament’s approval of amendments to the Superannuation General Provision Act 2000, legalising Covid-19 withdrawal.
The super funds in a joint statement yesterday said the amendments, passed by Parliament on Thursday, would now enable members who had their employment terminated directly due to Covid-19, to apply for a one-off withdrawal of 20 per cent of their own contributions up to a maximum of K10,000.
Once all formalities to operationalise the new amendment is completed, authorised super funds will be able to process Covid-19 withdrawals.
“Each super fund will have its own processes, and members should expect to complete a specific form and provide employer verification that they have ceased employment due to Covid-19 circumstances,” a statement by ASFPNG said. “Members are reminded that they must apply for the Covid-19 payment themselves. No third party enquiries or lodgment will be entertained. Members must provide their ASF member ID card or an accepted form of ID such as employer ID card, driver’s licence or passport.
“If the member remains unemployed after three months, they will be eligible to receive a monthly unemployment payment equivalent to 50 per cent of their last monthly salary, which is already provided for under the Superannuation Act.
“Members who are already receiving monthly unemployment payments may have reduced their employee contributions balance however, will be eligible to withdraw 20 per cent of their remaining employee contributions up to K10,000 under this new Covid-19 amendment.
“Members who take a Covid-19 withdrawal will earn less interest, reduce their housing advance eligibility and ultimately, could result in up to K50,000 less in their account when they reach retirement age.
“Members are encouraged to consider all options before drawing on their superannuation savings.
“History has shown members who leave their funds longer within an ASF for an extended period of time, achieve much better retirement outcomes than those who exit much earlier.”