1. What is Nambawan Super and where do I fit in?
The Nambawan Super Fund is a Superannuation Fund that provides an opportunity for people working in the public service and the private sector (companies), in Papua New Guinea to ensure their own future financial security.
Superannuation funds exist all over the world and are generally termed as contributory pension schemes. They are designed to encourage savings. Employers participate too by subsidizing contributions made by employees.
Your fund assists you in providing for the future security of yourself and your family. When, for instance, you retire, or if you become permanently disabled, you can be confident you will still receive an income. When you die, your family will be taken care of you.
It is particularly important for Papua New Guineans to be members of such schemes, because the country does not have a government-funded social welfare system that takes care of people when they no longer work.
2. Who are the Members?
Members are employees of any organisation in Papua New Guinea and are citizens of the country. They can either be employed by companies, in government departments and statutory authorities, on a full-time, part-time or casual basis as long as they have been in employment continuously for 3 months or more.
3. Do I have to join the superannuation fund?
Yes. Membership is compulsory for all employees after 3 months' continuous employment.
4. Who says that I have to join the fund?
5. Who looks after my money in the fund?
6. How do I know that my money is safe?
7. So how do I join?
8. Do I have an interview where everything is explained and I sign documents?
Not as such. As explained before, when you are eligible, membership is automatic. All commonly asked questions are answered in this booklet. If there is anything further you would like explained, please contact Nambawan Super.
9. If there is something I am not sure about, who do I speak to?
Nambawan Super and the staff of the Fund Administrator are there to help you and members are encouraged to contact the officers with any questions they have, about any matters that need clarification. (Contact numbers for the offices are listed in the back of this booklet).
10. What if I work outside of Port Moresby?
The Trustee has regional offices in Mt Hagen, Lae and Kokopo which are staffed with people who provide a liaison service between you and Head Office. (See the back of this booklet for the one nearest to you)
11. How do I know if and when I have joined the Fund?
Your employer will start deducting contributions, which you will see on your pay slip. Your employer remits those contributions to the Nambawan Super each fortnight. If at any time there is nothing on your pay slip to indicate a deduction has been made, you should speak to your personal officer.
12. What sort of information about myself do I need to provide when I join?
Your employer will already have much of the information required because you provided it when you applied for your job. (Things like your birth date, postal address, date of commencement of employment etc).
There are, however, times when circumstances change in your job or your family situation, so you are advised to inform the Trustee yourself of those changes to make sure your account records at the fund are up to date. It is very important that you provide a list of beneficiaries in the case of your death.
13. How do I know my employer will put his share of money into the fund?
14. What does it cost? As you will find out in the questions and answers in this section, it is very straight forward. There are no hidden costs in the scheme. Superannuation schemes are structured to be affordable for all members. That is why contributions are based on percentages of wages rather than set amounts.
15. Does it cost me anything to join the fund?
No joining fee is imposed on members.
16. Does it cost me anything to have my money looked after by the Board?
17. How much will my contributions be?
18. Can I contribute more or less than the amount stated in the Nambawan Super Act?
19. Does my gross salary include overtime pay, holiday and sick, or long service pay?
20. If my spouse works, does our money go into a joint account?
21. Do I get all my contributions back if I leave before I have been a member for 12 months?
22. If I get a retrospective wage rise, are my contributions adjusted accordingly?
23. What do I get out of it?
24. How much does my employer contribute?
25. Does that mean my benefits include interest?
Yes, interest credited is included each year.
26. Is there a time period before I qualify for the subsidy from my employer?
27. What interest do I earn on my money?
28. How do I know how much interest I earn each year?
29. When do I receive the interest?
30. Is interest paid on my employer's contribution?
31. What are various ways of ending employment?
32. How are benefits paid in each case?
33. I am due to retire soon and would like to make plans. How do I know how much money I will be entitled to?
The contributor information statements issued by the fund, to all of its members each year, are detailed and include cumulative figures.
So whether you are retiring or considering resigning, your entitlement will be the amount on your last statement plus contributions and interest paid since the last statement issued.
It is important to check your statement and advise us of any missing details such as your address.
34. Making a claim - getting it right.
35. How do I get a refund?
Along with the Separation Authority Form, The Trustee must be supplied with a certified copy of your salary history record and a copy of the approval letter of resignation, retrenchment or retirement.
36. How long does it take?
37. What about Income tax?
38. Do I pay tax on the part of my wages that goes into the Fund?
Yes, because tax is applied to your total salary before any deductions.
39. Do I pay tax on my refund?
Legislation requires that interest be taxed, but the tax is not payable by you until you make a claim for a refund.
40. How do I pay the tax when I make a claim?
There is no need for you to be concerned about that. The Fund Administrator deducts it and remits it on your behalf to the Internal Revenue Commission from your final payout.
41. If I change my employment situation, what happens?
42. What happens if I change jobs?
43. If I change jobs and my new job is not in the public service, can I stay a member of the Nambawan Super?
Members may elect that accumulated benefits remain in Nambawan Super or they can be transferred to the new employer's fund but they may not withdraw from superannuation.
44. What happens to my money if I leave my job and do not go to work anywhere else?
Where unemployment continues for over 12 months the balance of your funds may be withdrawn at that time. But generally members will be able to withdraw their funds immediately, where they terminate employment having reached the relevant eligibility age, which in most cases is 55 years.
45. What happens to my money if I am dismissed?
46. Retirement. Is it time to reap the rewards?
You have worked hard and saved through the superannuation scheme to ensure your financial security. It is time to enjoy life. it is also time to make one of the most important decisions of your life: What to do with your savings.
Members are strongly advised to bear in mind that the retirement benefit may well be the last opportunity to have money coming in regularly, to look after you and your family so make careful choices to use the money wisely.
48. How much do I get?
49. Invalidity, physical or mental incapacity.
50. What happens to my money if I get sick, but the Doctor does not know whether I will be able to go back to work in a few months?
The superannuation legislation prohibits the Trustee advancing funds to service these types of benefits for members.
51. Does the Fund have any medical benefits?
52. Death: look after your loved ones!
53. What happens to my money when I die?
54. Who can I nominate as a beneficiary?
55. How do I know that my money will go to the right people, when I die?
It is very important that you accept the responsibility for advising the Trustee who your beneficiaries are to be. If you have done that, but your family circumstances change, you must advise the Trustee of those changes so that your records can be updated.
56. How would my beneficiaries claim my money after my death?
57. What if I were single and died without nominating a beneficiary?
58. Changes in your personal life- make sure your records are kept up-to-date!
59. What if I am single when I join the Fund, but marry later on?
Like all situations where you make changes, you must advise the Trustee of your new status. If you wish your spouse to be your beneficiary, you must provide their name, the marriage certificate and personal details, such as their date of birth.
60. What if I get divorced from the person I have nominated as my next of kin and marry someone else?
61. Can my children from my first marriage still get some payment when I die, even if I have had more children in my second marriage?
62. What if I get divorced and do not marry again?
If you decide your ex-spouse is no longer to be your beneficiary, then you must complete a new nomination form, providing the name and personal details of your new beneficiary, so your records can be updated.
63. It sounds like a bank account. Is it?
That would defeat the purpose because it would provide too much temptation to spend now and forget about the future. Members do, however, earn interest on their money just like they do on savings accounts.
64. Can I pledge all or portion of my contributions as security for a loan from a commercial bank or any other financial institution?
65. Can I borrow money from the fund for things like paying my children's school fees, family medical expenses, buying a boat, or even going on holiday?
66. Can I borrow money from the Fund for any purpose?
Generally no, but one of the special benefits the Fund can offer is scheme which allows members who qualify to apply for a housing advance.
67. A special advantage for members: the chance to buy a home for you and your family.
68. What is a housing advance?
69. How do I go about applying for a housing advance?
70. How much can I apply for?
71. Does it cost me anything to apply for a housing advance?
72. Are there any costs involved?
73. How long does it take to get approval for my application for a housing advance?
74. If my housing advance is approved, how is the money paid?
75. If I am given a housing advance, how do I repay the money?
76. Do I pay any interest on a housing advance?
77. What happens if I am given a housing advance and a short time later lose my job, get injured so I cannot work or I die?
78. How long do I have to contribute to the fund before I am able to apply for a housing advance?
Please remember, the Trustee is there to help you, so if there is anything else you wish to know, do not hesitate to contact any of our offices listed in our contacts section.