Workers to lose millions


THE country’s workforce, who are members of the three authorised superfunds, is set lose millions of kina when BSP pays its K190 million market concentration levy to the Government in September.
According to the National Superannuation Funds (Nasfund) annual report for 2021, the combined net assets of the three major superfunds in the country, covering over 850,000 members is around K14.9 billion, all three have shares in BSP.
BSP chief executive officer Robin Fleming told The National yesterday that superannuation crediting rates for the 2022 financial year would be negatively impacted and the share price was not fully reflecting the underlying value of BSP’s reported profit for 2021.
“BSP’s net profit after tax for the first quarter of 2022 was K69 million after deducting the full K190 million additional company tax from our operating profit,” he said.
“Despite the fact that the tax is not to be paid until September from an accounting standards perspective BSP has had to account for this tax in the first quarter.”
Nasfund, whose profit increased by 13 per cent which resulted in a crediting rate of 6.5 per cent equating to over K354 million paid to members accounts for the 2021 year, cautioned members.
“We do not expect this profit level to be sustained, especially with new legislation introduced by Government which will affect our dividend income from Bank South Pacific.
“Under the newly introduced dominant player levy later renamed the market concentration levy, estimated loss in dividend and share value to Nasfund as a top five investor is approximately K128.5 million.
“This equates to approximately two per cent in interest crediting rate that members will miss out in 2023 once this levy is implemented in 2022,” he said.
Nambawan Super Limited (NSL) deputy chairman Dame Meg Taylor had said that the Government needed to consider the impacts of the market concentration levy as it would significantly affect the superfunds.