What is Section 45A?
Information on the Non-Contributory Vested Pension Benefit (Section 45A)
Who is eligible for the benefit?
- FIRE SERVICE
- CORRECTIONAL SERVICE and the
- POLICE FORCE
Provided that they need the Eligibility requirements under the Act.
Members of departments and approved authorities that were required to contribute to Public Officers Superannuation Fund (POSF) prior to 1991 DO NOT qualify for this benefit.
Prior to 1st January 1991, non-commissioned officers of the Correctional Service were not required to contribute to POSF but were entitled to a non-contributory pension after completing a minimum of 20 years of service. Members of the Fire Service were also not required to contribute to the Fund but were not entitled to a pension. Members of the Police Force were required to contribute to NSL from 1972 onward so as other public servants. However, these members already in the force prior to 1972 had the option not to contribute to POSF. Those who exercised the option not to contribute were entitled to a non-contributory pension after completing a minimum of 20 years’ service with the Police Force.
Changes from 1991
From 1st January 1991, the POSF Act made it compulsory for all permanent Public Servants including members of the Fire Service, Correction Services and Police.
In recognition of the period of non-contributory service before 1991 by Fire Service, Correctional Service and Police Force members, the POSF Act was amended to include a vest benefit in respect of service provided by these members of the Fund where they exited the Fund after 1st January 1991.
Take note that anyone that ceased employment before 1991 is not eligible for this benefit.
The Vested Benefit only applies to:
- Members of the Fire Service, Correctional Service and who commenced service before 1st January 1991.
- Members of the Police Force who joined before 1972 who left the Fund after that date.
The Vest Benefit is only payable where members have completed a total of 20 years’ service of non-contributory and contributory service taken together;
Once an officer has completed 20 years of total service they automatically become entitled on termination of employment to the payment of the benefit;
Termination after completion of 20 years of service is taken to mean separation of any reason including resignation, retrenchment, retirement on all grounds and termination by the employer for any cause;
Retirement is taken to mean 50 years of age, but in order to draw the Benefit, the member must have completed 20 years of service; and
All payments of the Benefit will be paid by Nambawan Super in accordance with the Fund’s rules applicable to pensions and lump sums.
For a member who started employment in 1980 was not contributing until 2001, Is the member eligible for section 45A?
Yes the member is eligibility based on;
- Continued service over 20 years without any break eg. Termination or suspension
- Not contributing for the last 20 years
If a member was employed in 1975 and started contributing in 1980 what happens to his contribution between 1975 and 1980?
Is there a set time for eligible members who have exited to apply for the benefit?
How often does NSL receive funding from the Government to pay this benefit?
If a section 45A member dies, will beneficiaries be paid entitlements?
Yes, if the member did not receive the payments at the time of death
Is Section 45 payment included in my normal benefit payment or is it paid separately?
When will the pension payment of section 45 cease for pensioners?
Section 45A is not a pension payment. It is paid to eligible officers when they exit employment as a one-off lump
Is there any possibility of accessing it in lump sum?
Will the interested be added to Section 45 for those missing years (non-contributory years)?
How can I access section 45 if I am the beneficiary of the pensioner?
How is the section 45A payment calculated?
Who is responsible for payment Section 45A?
Can I get section 45A if I’m on a pension?
Who is eligible for Section 45?
Exiting Police Officers, PNG CIS Officer and PNG Fire Services Officer who meet all the criteria below;
- Employed with respective depts. Prior to January 1991
- Entitled to non-contributory pension
- Commence contributing to POSF as at 1 Jan 1991 until termination from employment
- Served for a minimum of 20 years