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Accessing Superannuation

 

The primary purpose of superannuation is to help members enjoy a comfortable retirement when you’ve finished working.

Therefore, to be eligible to access superannuation you will need to have finished work.

Eligibility to access superannuation

Normal Superannuation eligibility

Under the Superannuation Act a member who has ceased employment is eligible to access their full superannuation entitlements when they:

  • reach 55 years of age
  • complete 25 years of services
  • complete 20 years of police or military service.

If a member has left employment but has not met the eligibility requirements (55 years of age or the years of service requirements) for a normal exit they must wait for 12 months from the time ceased employment before can formally apply for their superannuation entitlements.

Medical Grounds Retirement eligibility

If a member is deemed unfit for duty due to a medical condition, the member can retire on medical grounds.

Members who retire on medical grounds may be eligible for a full payout even if they are not yet reached 55 years of age or have not provided 25 years.

Members intending to retire on medical grounds are encouraged to consult Nambawan Super staff before applying.

Unemployment benefit eligibility

If a member becomes unemployed and has not found employment after three months, they can apply for unemployment benefits. Unemployment Benefit is equivalent to 50% of monthly salary at the time they left employment.

Members have to apply each month for Unemployment Benefit

If members’ reach 12 months of unemployment they are eligible to be paid out the remaining superannuation entitlements.

Repatriating or Emigrating to a new country

If a member is repatriating to their home country, or permanently emigrating to another country, they may be eligible to formally apply for their superannuation entitlements.

Members will need to wait 12-months from the last contribution to be eligible for full payment.

Retirement Savings Account Withdrawals

The Retirement Saving Account (RSA) is an account created within Nambawan Super specifically for retirement benefits. It allows members to preserve their retirement savings and have access to funds for a secure and comfortable lifestyle after they retire. It removes the temptation to spend their retirement savings in one lump sum.

Housing Advance

Members who have been contributing for at least 5 years can apply for a housing advance to either build, buy or renovate their principal place of residence. The advance is the total of the members own super contributions. The advance does not include any interest component or amount for employer’s contributions. It does include any voluntary contributions that a member has made.

Covid-19 Withdrawal

Members who become unemployed directly or indirectly due to Covid-19 are now eligible to apply for a one-off withdrawal of 20% of their own contributions up to a maximum of K10,000. This amount will be tax-free to the member.

If a member remains unemployed after 3 months, they will be eligible to receive a monthly unemployment payment equivalent to 50% of their last monthly salary which is already provided for under the Superannuation General Provisions Act.

 

Taxation of Superannuation entitlements

Under Section 46B of the Income Tax Act, tax is to be applied to all member benefit payments at the time of exit.

Below is a table of how tax is applied

 

Rate of Tax Applied Years of contribution  or Situation
Marginal rate of Tax on employer contributions and accumulated interest Less than 5 years
 The Lesser of 15% or the marginal tax rate on employer contributions and accumulated interest

Greater than 5 years

Less than 9 years

 The lesser of 8% or the marginal tax rate on employer contributions and accumulated interest

Greater than 9 years

Less than 15 years

2% tax on employer contributions and accumulative interest.

Greater than 15 years

Or under the following circumstance:

1.       Death exits

2.       Medical Exits

3.       Member is over 50 and has contributed more than 7 years

4.       Member is 55 years of age

 

Requirements when lodging an application for superannuation entitlements 

Normal Benefit and Unemployment Benefit
  1. Completed Separation Authority Form
  2. Exit Letter from Employer
  3. 2x Recent Payslips
  4. 6 months bank statement for salary/wages account.
  5. Statutory Declaration Form specifying the method of payment and employment status.
  6. Copy of one currently valid identification card (e.g.: driver’s licence, work ID or passport)

Members applying for UB are required to submit the above documents for the first payment only. After that they are only required to submit the following:

  • State Declaration Form stating they are still unemployed.
  • Copy of recent bank statement.
  • Copy of Identification card

 

Unfunded State Share Payments

 Public Servants who have exited and wish to claim unfunded state payments, (once funds are available),  are required to provide the following:

  • State Declaration Form stating that they would like to receive their unfunded contribution.
  • Copy of recent bank statement.
  • Copy of one currently valid Identification card (e.g.: driver’s licence, work ID or passport)

 

Medical Exit

Members who are deemed unfit for duty can be retired on medical grounds by their employer. Members who exit on medical grounds are not required to wait 12 months even if they have not met the requirements for normal exits (i.e.: 55 years of age or 25 years of service). The following documents will need to be submitted:

  1. Completed Separation Authority Form
  2. Exit Letter for Employer confirming retirement based on medical grounds
  3. Two Medical Reports from two hospitals/Clinic
  4. 2x Recent Payslips
  5. 6 months bank statement of your salary/wage account.
  6. State Declaration Form specifying the method of payment and employment status.
  • Copy of one currently valid identification card (e.g.: driver’s licence, work ID or passport)
Death Benefit

When applying on behalf of a deceased member, beneficiaries must ensure the following documentation is submitted:

  1. Completed Separation Authority Form
  2. Demise Letter from Employer
  3. 2x Recent Payslips
  4. Copy of deceased member’s Identification Card (e.g.: driver’s licence, work ID or passport)
  5. State Declaration Form from beneficiaries declaring their identity, date of birth and their relationship to the deceased member.
  6. Nominated Beneficiaries over 18 years of age must have an active bank account. Provide copies of latest bank statement with school or work ID. For Nominated Beneficiaries below 18 years of age, Funds will be transferred to Retirement Savings Account (RSA).

 

Retirement Savings Account Withdrawal

Retirement Saving Account (RSA)

Requirements for withdrawing from an RSA account

  1. RSA withdrawal form*
  2. ID card
  3. Copy of bank statement

*Note: Members are urged to check their withdrawal limit to avoid tax implications. If the amount requested by the member is over the member’s withdrawal limit, the member is also be required to submit tax consent form with the application.

RSA Minor

RSA minor (below 18 years of age) can withdraw their funds for the following purposes:

  • Education Expenses such as school fees or stationery for school. Payment is made directly to the school or supplier of the stationary items where an invoice is provided.
  • Medical Expense  – Medical reports to be provided and payment will be made paid directly to hospital/clinic or service provider.
  • Christmas Expenses (Not exceeding K500)

To withdraw their funds’ members are required to provide

  1. RSA withdraw form
  2. Consent from parent/Guardian
  3. State declaration form
  4. Bank account statement

RSA Death

When applying to withdraw a deceased RSA member’s funds, beneficiaries must ensure to submit the following documents.

  1. Statutory declarations from nominated beneficiaries declaring their identity, date of birth and relation to the deceased member.
  2. Death certificate
  3. Bank statement
  4. Proof of identification

 

Housing Advance

To apply for a housing advance can complete and housing advance form as well as provide additional information required in the application form as well as other supporting documents. For more information go to our housing advance section.

Covid-19 Withdrawal

To apply for a Covid-19 Withdrawal members can complete the Covid19 Withdrawal form. The form will have to signed and verified by the employer and submitted with the necessary supporting documentation. For more information go to Covid-19 page.

Note: All applications are to be submitted in person by the member (or in the case of deceased members) by their nominated beneficiaries and not through a third party or proxy. Applications should be submitted to the nearest local branch to where you are currently residing.

In the event beneficiaries of deceased members reside in different locations, they can submit their documents to their nearest branch, and will not be required to all be physically present in the one location.

Nambawan Super DOES NOT charge any fees for applications. 

For more information or queries visit your nearest Nambawan Super Branch or contact our Call Centre Team on  180 1599 and email CallCentre@nambawansuper.com.pg

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