Superannuation Bill later: PM
By REBECCA KUKU
THE amendment to the Superannuation (General Provisions) Act 201, to authorise people to withdraw part of the retirement savings will be tabled in Parliament in August, says Prime Minister James Marape.
Marape told The National last Friday that they had to debate and pass the National Pandemic Bill first to ensure public safety as the Covid-19 still existed in other countries and thus remained a threat to the country.
“So on this sitting, we have been busy in consultation with our people, departments, health experts and communities as a whole so that the Bill can be passed.”
He said “we will work on the Superannuation Bill and bring it to Parliament in August”.
The amendment to the Superannuation (General Provisions) Act is needed to allow members of superfunds laid off when the state of emergency was declared in March to withdraw part of their savings.
Deputy Prime Minister and Minister for Justice and Attorney-General Davis Steven told The National earlier that Cabinet had agreed to have the amendment tabled in Parliament.
Steven said this was to enable workers to access their savings during the state of emergency.
He said the amended legislation would apply not only during the Covid-19 but also for natural disasters in the future.
The current legislation allows superfund members to withdraw their retirement savings only after one year of leaving work.
The superfunds include Nasfund, Nambawan Super, AON Master Trust and Comrade Trustee Services Ltd.
8 comments
Not only for those affected by the COVID 19 and natural disasters, Those already reached the age of 60 and are almost retiring should also have the benefit of withdrawing part of their savings. Many have passed on and will be passing on and will not be rightlfully enjoying their savings. This is really unfair. Please change the policy!
Yes amend the laws to benefit all ,at least allow us to received part of the savings for ,medical emergencies and paying for higher education fees for working class,which I think is part of the investment just like withdrawing part servings for housing scheme etc.
Government while reviewing the superannuation laws should include for other savings such as, Education Assistanc savings, Christmas savings other than the compulsory saving just like the Nasfund has done it, so that the members can do extra saving to help them self when in need in the areas of school fee assistance and for holiday / Christmas spending.
I think this Government is a Wolf dressed in sheep’s clothing.
This so called legislation currently allowing supperfund members to withdraw our retirement savings “Only After One (1) Year of Leaving Work” is lquite too long. We would be very much appreciative if the current government reduce this ‘unwanted one (1) year down to 3 months in the upcoming Supperanuation Bill in August.
People have passed away whilst waiting for one year. If it was 3 months they would have enjoyed their hard earned cash long time ago.
So from now to August, who will loom after the unemployed? PM is not wise but to feed some few majority of people who will benefit from the Pandamic bill. A new bill to lure billions of kina without notice..
To start with, one has to understand Superannuation is for retirement(that was the intention of this mandatory savings by the govt) that why the rules were put in place to minimise the leakages or early payments etc. It is on social security systems where payments can made as an when. I agree why do we wait till retirement when we need the money now, so in the absence of a social security system in the country and to address these immediate needs and wants of members of an ASF, the respective funds have set up savings and loans societies to cater their respective members’ needs. These Savings and Loans Societies offer cheaper loans and better interest on your savings, life and health insurance and other savings products, hence it is everyone’s responsibility to understand this and utilise these services for now and access their superannuation savings upon retirement. Further, superannuation funds play a critical role in the economy that translates to job creation, investments, tax revenue, debt funding for govt budget etc, hence such leakages will harm the economy and to an extent have enormous negatives consequences on individuals. The current legislation allows for members to access their savings if a member is still unemployed for 3 months after being terminated so in fact, they do not need the proposed legislation to access their savings now that the bill has been deferred to August.
A very unwise decision by Government to allow members to withdraw a portion of their super funds due to effect of Covid-19 or any other natural disaster. This is clearly the hallmark of a banana republic or failed state to temper with key state institutions that have specific roles toward nation building, especially in growing the economy.
Peter S Mamp’s reply above in favour of super funds to maintain their current policy and practices is spot on and explains all.
Comments are closed.