Tarutia: Time right for review of legislation of superannuation

NASFUND chief executive and Chairman of the Association of Superannuation Fund of Papua New Guinea, (ASFPNG) Ian Tarutia says the time is right for a review of the legislation governing the Superannuation industry.
In a statement yesterday, Tarutia said: “Superannuation reforms introduced in 2000 with a strong focus on governance has been highly successful. Today the combined pool of funds held by the major superfunds is in excess of K11.5 billion for over 700,000 workers throughout the public and private sector. However, the growth has been stifled in terms of the criteria used for compulsory contribution, early withdrawals of retirement savings and the high cost of outsourced administration functions.
“At present less than 10 per cent of our population are contributing for their retirement,.
These contributors are essentially carrying 90 per cent of the population due to the extended family and beneficiary connections.
“The Superannuation Act has protected contributors and seen their savings grow exponentially over time.
But circumstances have changed, the environment has changed and the Act needs to be relevant to members needs today.
“Nasfund will work with ASFPNG and the regulator Bank of Papua New Guinea and key government departments in seeking the establishment of a task force this year so the important task of reviewing the Superannuation Act can commence.”