PEA demands Govt pay K182 mil super debt

The Public Employees Association [PEA] has demanded that the National Government immediately settle about K182 million in outstanding employer superannuation contributions for public servants.

The unpaid contributions cover the period from April to August this year.

PEA general secretary Ugwalubu Mowana raised the concern during a press conference in Port Moresby yesterday, stating that the State’s default continues to undermine public servants' confidence in the country's superannuation system.

Under the Superannuation Act 2000, the State is required to contribute 8.4 per cent towards public servants’ salaries every fortnight, while employees contribute six per cent.

The missing State component is estimated at K13.8 million per fortnight.

“All the members who have retired so far this year have not been paid their retirement benefits in full by Nambawan Super Limited, and this is a direct result of the State component of 8.4 per cent that is mandatorily required,” Mowana said.

He urged the Department of Finance, the Department of Treasury, and heads of government departments to ensure these statutory obligations are catered for during budgetary formulations.

Joining the call, Papua New Guinea Nurses Association president Fredrick Kebai, who represents more than 20,000 nurses nationwide, said the issue is ongoing.

“It shows on the payslip that the member’s contribution runs to Nambawan Super or other super funds, and the employer contribution is also on the payslip,” Kebai said.

“However, that money is not hitting the Nambawan Super account in a timely manner every fortnight.”

The association has given the government until the end of the year to clear the outstanding superannuation debt.

Attempts to get a comment from the Department of Treasury yesterday were unsuccessful.