Nambawan Super receives K100m for unfunded super exits

Nambawan Super Limited has confirmed receiving K100 million from the state to pay retired public servants who exited employment between June 2017 and April 2018.

Chairman of Nambawan Super Anthony Smare thanked the State on Tuesday for making progress in addressing unfunded payments for former public servants over the past six months.

“Since July 2018 the State has made K250 million in payments, settling the unfunded liability for more than 5,100 retired public servants,” Mr Smare said.

“This latest payment will enable 2,100 former teachers, nurses, police officers and other public servants to access their remaining superannuation benefits that the State had owed them at their exit from the public service.”

Mr Smare said the fund had received the K100 million as a result of the treasurer’s 2018 Supplementary Budget announcement that included K146 million for the unfunded state liability.

“This K100 million was received in two payments- and we anticipate the remaining committed funds will follow soon,” he said.

He said in the 2019 budget commitments the State announced K150 million towards superannuation for public servants who may retire in late 2018 and 2019.

“At the close of 2018, after accounting for this recent K100 million payment, the State owes K70 million to 1,525 former public servants who retired between May and December 2018,” he said.

“If the two commitments of the supplementary budget and on-going payments for 2019 are met, the State will have cleared their unfunded contributions and have established a sound process and practice that if maintained would prevent a backlog reoccurring,” Mr Smare said.

“This is significant progress and is a result of sustained dialogue between Nambawan’s team and representatives of the State.

“I thank Prime Minister Peter O’Neill, Deputy Prime Minister Charles Abel, Treasury Secretary Dairi Vele and Deputy Secretary Manu Momo for the progress made to address this issue through the past year.”

Mr Smare said following two court orders in favour of Nambawan Super that directed the State to meet their obligations of unfunded contributions, Nambawan Super have worked closely with the State to find ways to progressively clear arrears to retired public servants.

He said Nambawan Super will work closely with the State to settle the remaining 2018 affected members as soon as possible.

He said the Nambawan Super’s Board and Management Team are committed to resolving the unfunded liability issue in full, 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.

 

 

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