be a game changernasfund.com.pg/enewsletter/jul-aug_compressed.pdf · i urge employers to take time...

Member Newsletter July-August 2018

Call :1588 l Email : [email protected] l Website : www.nasfund.com.pg or visit a branch

BE A GAME CHANGERIncrease your member ContributionEmail: [email protected]


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From the CEO’s Desk

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NASFUND is now a member of theJoint Agency Spot Check Operation(JASCO) as of 20 August 2018. In welcoming JASCO’s newestmember, Chief Migration Officer ofImmigration & Citizenship AuthoritySolomon Kantha said:

“Issues like low wages and non-remittance of superannuation arerecurring issues flagged in everyJASCO Report. Hence, by havingNASFUND join JASCO, such issuescan be effectively dealt with. NASFUND can also use this platformto effectively carry out awareness andeducation to the business community

visited during checks on superannuation processes.”

NASFUND Chief Executive OfficerIan Tarutia thanked Mr. Kantha andsaid NASFUND looks forward to theopportunity to work with its regulatorBank of Papua New Guinea throughthe umbrella of JASCO. He remindedemployers and employees that as superannuation is guaranteed by theSuperannuation (General Provisions)Act 2000 (‘Act’), it is non-negotiable.Mr. Tarutia said:

“The law is crystal clear on compliance and a breach will be met with civil proceedings asAuthorized Superannuation Funds

such as NASFUND are empoweredby the Act to recover outstandingsuperannuation contributions, interestand costs.”

NASFUND’s membership of JASCOnow bolsters its default managementefforts as NASFUND prepares tocooperate, coordinate and shareresources with members of JASCO toenforce superannuation compliance.

JASCO is made up of governmentagencies such as Immigration, Customs, Department of Labour,Bank of PNG, Investment PromotionAuthority, Censorship Board, InternalRevenue Commission, ICCC and the Police.

NASFUND joins JASCO.

effects, as this affects our members. Payment transactions increased to 45,000for January to July 2018. This is mainly due to unemployment benefits, comparedto 61,000 transactions for the full year 2017. As an institution dedicated to growand preserve member savings for retirement, I urge members to hold off as muchas possible on drawing down on your retirement savings so you can enjoy a comfortable retirement. • Defaulting Employers. NASFUND over 2018 revised and strengthened the Defaults Management Process which is now in full execution since 1st August. I urge employers to take time reading the process flowchart and description around the execution of this process. • Voluntary Contributions. Since July NASFUND rolled out phase one of a voluntary contributions campaign. Phase one entails registering members to save additional voluntary contributions above 6%. The response has been impressive. Phase two involving SALARY SACRIFICE or SALARY PACKAGING will be rolled out from October, preparing employers and members to effect in January and February of 2019. • Investments. On the investment front, the upgrade and refurbishment of Kina Haus in Downtown Port Moresby is progressing well. The improvements will be greatly enjoyed by tenants. Entities seeking office space with new and improved facilities are urged to make contact with NASFUND.

NASFUND has joined with Lamana Development Ltd to develop and relaunch an upgraded Loloata Island Resort Limited. Loloata Island Resort started in 1977 as a specialty dive resort. Until NASFUND and Lamana bought the shares in 2016. The old Resort is now being replaced with a much larger development. The new Loloata will be the most modern and Luxurious Island in PNG.

The resort will provide 66 rooms ofvarious sizes from hotel rooms to villas.Some rooms will be over the waterwhile others will be on the hillside andsome in the main building. One thingthese rooms will have in common isspectacular views and modern comfort.

The main building will include conference facilities for 250 peopleacross 3 rooms which open to onelarge conference space. Also in themain building will be a restaurant anda cafe plus two bars. Recreation facilities include swimming pool, watersports and of course diving.

Loloata has built a reputation as a dive resort and attracts divers from all around the globe and is just 30 minutesaway from Jacksons International Airport. There are 29 dive sites near toLoloata and there is good variety aswell.

The project is 77% complete to dateand is expected to open for businessin the first Quarter of 2019.

Enjoy reading the updates in this editionof NASTOK. I wish you all a positiveand progressive 4 months remaining for 2018. Sincerely,

Ian Tarutia, OBEChief Executive Officer

Ian Tarutia, OBEChief Executive Officer

Dear NASFUND Members and Employers, Welcome to the JULY-AUGUST edition of the NASFUND newsletter, NASTOK. We are now well intothe second half of 2018 and I’d like to provide a few keyupdates on what we are doing. • Payments. Due to the continuing subdued economic environment,unemployment is increasing as businesses adjust to keep their doors open. NASFUND is now beginning to notice the lagging


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Default Management Process for NASFUND Employers.

• First 30-day default:• ServePayment AgreementonemployerasnoticepursuanttoSection79(a) oftheSuperannuation (General Provisions) Act 2000. • Employermustsign.•IfemployerfailstocomplywiththePaymentAgreement,thengotoStep2.

• Day 45:• Forcompanies only,serveemployerwithForm42(Creditor’sStatutory Demand)underCompaniesAct1997,or; • Fornon companies,serveemployerwithForm2(Creditor’sPetition)under InsolvencyAct(Chapter253).•Ifemployerfailstocomplywithinstatutorynoticeperiod,thengotoStep3.

Step 1

Step 2

• Day 60: • LegalDivisiontoprosecuteemployerforrecoveryofoutstandingsuperannuation contributions,interestandcostsattheNationalCourt,includingthrough: • liquidationproceedings(forcompaniesonly);or • insolvencyproceedings(fornoncompanies). • NASFUND sends a courtesy letter to Bank of Papua New Guinea informing of actionstakenagainsttheemployer.Step 3

Welcome to a brand new column thatfocuses on superannuation law andtopics that affect employees and employers connected to NASFUND.This edition, we touch briefly on superannuation and insolvent tradingin Papua New Guinea. Each month, a number of companiesthat are registered with NASFUND asemployers make the default list. That means as employers, these companies fail to remit superannuation contributions after the fourteenth day of every month.This is a serious statutory compliance issue because superannuation contributions in Papua New Guineaare guaranteed by Part XIV (sections76 to 84) of the Superannuation(General Provisions) Act 2000. When a company fails to remit superannuation contributions on time, it is automatically in breach of the

Superannuation (General Provisions)Act 2000. NASFUND can issuecivil proceedings against such acompany at the National Court to recover outstanding contributions,interest and costs. Bank of Papua New Guinea (BPNG)can also issue criminal proceedingsagainst the company. Where BPNG issuccessful, the company may be finedan amount not exceeding one hundred thousand kina or imprisonment for a term not exceeding two years or both for failing to make both employer andemployee contributions which is inbreach of sections 76 and 77. Similarly, a company that fails to remitcontributions within 14 days of the endof each calendar month breaches section 78 and may be fined anamount not exceeding five hundredthousand kina or imprisonment for aterm not exceeding ten years or both.Only a human being can serve an imprisonment term. Therefore, a

company director risks attracting aprison term with each breach by acompany.

NASFUND can also rely on the Companies Act 1997 to recoverunpaid superannuation amounts from a company director or formerdirector. For instance, the companydirector or former director may also be cited for a breach of section 348for insolvent trading.

Where NASFUND takes out liquidation proceedings successfullyagainst such a company, the Liquidator can apply to the NationalCourt for a declaration that the company director or former directorpay the debt personally. Liquidationis a legal option available to NASFUND and will be exercised if adefault reaches 60 days. NASFUNDhopes that it does not get to that stage and expects employers to dothe right thing by law.

Unpaid super and insolvent trading.


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Membership Discount Program Invitation.The Membership Discount Program (MDP) allows NASFUND members to obtain a discount on goodsand services in selected stores and service providers throughout Papua New Guinea. The program meanssignificant savings off normal retail prices and helpsmembers to stretch their kina even further.

For an up to date listing of Discount providers, visit www.nasfund.com.pg and view the Membership Discount providers list online.

This year, invitation is extended to companies willing to be in partnership with NASFUND to enjoy the great benefits the Membership Discount Program has to offer.

Statistics of our membership. NASFUND has a total membership base of 500,000and 30,000 plus new membership identification cards processed in 2016 to 2017 nationwide. Publicity and promotion of the partnership.

• Publicity in NASFUND Facebook page that has 23,974 followers and still growing.• NASFUND has the naming rights for the popular FM100 Talk Back Show that can provide on-going promotions and awareness. • Announce the partnership through newspaper advertisements.• Publicise the partnership through Newsletters to 2000 plus employer contacts nationwide.• Weekly Employer Visits to estimated 10 employers per week of over 300 attendees on shop floor presentations.• Online promotion where more than 15,000 members frequent NASFUND Website due to recent revamped online services.

How It Works NASFUND Members can present their valid membership identification cards at the counter to purchase or receive service upon the agreed discountoffered. Minimum discount rate offered is 5% and it isservice providers’ preference on Terms and conditionsapplied.

If your company wishes to participate, contact our Business Development team on telephone: 3131 820 or E-mail: [email protected] / [email protected]

Discount Partners and rates offered.Nationwide Discount Air Niugini 15%City Phamacy 5%PNG Air K50 Port Moresby Discount All Workers Barber Services Ltd 20%Brian Bell & Co. Ltd 10%Courts (PNG) Ltd 10%CLP group 5%Esco Ltd 10%Prolonk International 5%Wellness 5%Mills Dental Care 10%Sed Optical Ltd 20%City Health Care 10%Theodist Ltd 10%Daltron Ltd 10%The Shady Rest Hotel 10%Mr. Mike 10%Glow Hair Boutique 10%Cellar Resturant 10%Lamana Hotel 10%Chin H Meen & Sons Ltd 15%Chin H Meen Entertainment Centre 10%Able Computing (PNG) Ltd 10%Belltek Chemicals Ltd 15%Monier Ltd 10%Neisian Beauty 20%Look Fresh Salon 10%Solar Solutions PNG Ltd 15% /10%Nanga Medical & Dental Centre Ltd 12.50%Lotus Spa 15%Solar Energy Solutions PNG 10% /12.5% /15%Leon Enterprise Ltd 10%Camp Adminsitraion 10%PNG Pipemakers 5%Etnambo Builders 10%Lotus Spa 15%Sed Optical 20%Solar Energy Solutions 15%Anitua Hardware 10%



Lae Discount Niugini Builders Suppliers Ltd 5%Nuigini Electrical Company 12.50%PNG Pipemakers Ltd 5%Brian Bell & Co Ltd 10%Belltek Chemicals Ltd 15%Chin H Meen & Sons Ltd 15%Nesian Beauty 20%Theodist Limited 10%Phils Hotel 5%Masslift New Guinea 10%AGD Printings 25% Mt Hagen Discount Gilsenan Melpa Ltd 10%Kiminiga Hotel - Accomodation 15%Kiminiga Hotel - Meals 20%Mt Wilhelm Hotel 5%Brian Bell & Co Ltd 10%Belltek Chemicals Ltd 10%Mt William Hotel 5%McRoyal Hotel 10%Jiwaka Mission Resort 5%Total Homes Limited 5% Madang Discount Jais Aben 15%Belltek Chemicals Ltd 15% Kimbe Discount Kimbe Bay Hotel 10%Kimbe Bay Shipping Agencies 12%Liamo Reef Resort 10%Abel Computing 10% Goroka Discount Belltek Chemicals Ltd 15%Brian Bell & Co Limited 10%Pacific Gardens Hotel 15% Wewak Discount Leon Hardware 10% Wabag Discount Ribito Hotel Limited 5% Alotau Discount Alotau International Hotel 10%

Tawali Resort 25%Samarai Plastics 10% Kokopo Discount Brian Bell & Co Ltd 10%Belltek Chemicals Ltd 15%Hongland Hardware 10% Lihir Discount Awella Books & Stationary 5% Kavieng Discount Bisi Trading Ltd 58%Joseph Tongs & Company 5%PMM (Cofgro No.35) Ltd 15%Island Builders Suppliers 10%Huilong Enterprise Limited 5% & 10%Kavieng Hotel 15%Red Star Investment Limted 10% Tabubil Discount Belltek Chemicals Ltd 15%Camp Administration 10%WP Constructions ltd 15% Kiunga Discount WP Contructions & Pharmacy 15% Hardware Dynamic Engineering & Contruction 10% Ltd -Timber Dynamic Engineering & Contruction 12% Ltd -Hardware Dynamic Engineering & Contruction 15% Ltd - Electrical Vanimo Discount Vanimo Forest Products 5%Lin S Trading 10%Aung Myae Ltd 10% Kundiawa Discount Etnambo Builders 10% Manus Discount Juromo Enterprise 10%Handyman Home Centre Shop 7%Kingfisher Lodge 10%


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NASFUND is revamping its websiteto allow a mobile phone compatibility for easier navigation of information on products and services by contributing and non-contributing members. Providing a user friendly website will provide members to accessupdated information efficiently andfaster anywhere and anytime.

The new Look and feel will capturethe FUND’s branding colors of yellow, black and white to promote the essence of our business to safeguard members’ retirementfunds. An advantage for members who are TELIKOM sim card users, canaccess the website for free after an agreement by NASFUND and TELIKOM was signed and formallyannounced early this year. This allows for members to access theNASFUND Website without datacharges.

The homepage will feature these main menus and their drop downmenus with the following contents:

Your FUND’s new look website launching SOON.

Home

About Us• Vision and Mission• NASFUND Deed• Shareholders• About Super• Prudential Standards• Investment Policies• Superannuation Act• Board of Directors• Management

Contributions• Minimum contributions by employer• Contributions by employee• Required time for remittances• Power to recover interest on default• Calculation of contributions• Employers not to reduce wages• Different departments combined.

The 3 sub-items Member Voluntary,Salary Sacrifice & VC Process will be linked to PDF files so thatmembers can read and downloadinformation they require.

Salary Sacrifice and Exit Taxation

calculators will have rules, questionnaires and logic flows withsupporting notes.

Payments• Retirement• Unemployment• Housing Advance• Medical• Death• Emigration• Transfers between Funds

Member Maintenance• Merging of Accounts• Bio Data Updates• Beneficiary Updates• ID Cards• Membership Discount Program

Media• Annual Reports• E-Newsletters• Press Releases

Above is a sneak preview of the new look website. Stay tuned whenwe go LIVE with your FUND’s newwebsite.



What is member voluntary contribution?Extra contribution above mandated member 6%.

Why increase your member contribution? Earn high returns on interest. Increase your housing eligibility. Quickly grow your super balance.

Increase your member contribution

How do I make voluntary contribution?Step1 - Complete the “Employee Voluntary Contribution”form. (Get from website, email: [email protected], nearest branch or your payroll section).

Step 2 - Send completed form to [email protected] for assessment.

Step 3 - NASFUND will submit form to employer for approval.

Step 4 - Employer approve and effect fortnightly increase in contribution.

Step 5 - Employer sends Form to [email protected].

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Your Partner in Superannuation

EMPLOYER ONLINE PORTALwww.nasfund.com.pg

Employer Benefits:

•Employerautomatescontributionallocations.•Employermonitorscontributionshistory.•Employercreatesnewmemberaccountstospeed uppayrollprocessing. • Timelyallocationof contributions. • Errornotificationson payrollfileuploads.

Toregister:

Downloadtheregistration form from www.nasfund.com.pg, visitabranchoremail [email protected].

Maximumofthree(3) payrollofficers/supervisors arerequiredtobe registered.

Submitcompletedformsto [email protected] or dropoffatyournearest branch.

Processingtakes24hours.If you are already a member of NASFUND but don’t have a login yet,register now.

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