Today Nambawan Super Fund confirmed receiving K100 million from the State that will go towards paying public servants who exited employment between June 2017 and April 2018.
Anthony Smaré, Chairman Nambawan Super thanked the State for making progress in addressing unfunded payments for former public servants over the past 6-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 Smaré 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 Smaré 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.”
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.”
“If the two commitments of the supplementary budget and ongoing 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 Smaré 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.”
“I also strongly encourage the exited members who are receiving these funds into their accounts to talk to Nambawan Super staff about how the fund can continue to invest these funds on their behalf to grow during their retirement, providing them with income for their retirement to help offset the loss of their salaries.”
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. Since December 2017, the State has paid K270million to the unfunded state liability.
Nambawan Super will continue to work closely with the State to settle the remaining 2018 affected members as soon as possible.
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.
All payments to affected members will include interest to the date of payment. Members will be notified to contact Nambawan Super’s call centre or branch to finalise their details so as to arrange outstanding payments.
Members who are entitled to receive their superannuation benefits are encouraged to consider their long-term wellbeing.
Speak to the Nambawan Super team about a Retirement Saving Account to help manage your superannuation benefit to ensure a comfortable retirement.
Nambawan Super manages superannuation funds of approximately K7 billion for more than 185,000 members and continues to grow from both the private and public sectors.
NOTE: The balance owed by the State has been calculated using the interim interest rate and based on known retired public servants to end 2018. The balance will fluctuate as the interest rate for 2018 is finalised and announced in March 2019 and as public servants continue to retire.