Category Archives: Superannuation

K3.1b Pay-Hike Bill Probed

By CLIFFORD FAIPARIK ( The National )

 

AN exercise is being carried out in government departments to find out why the total civil service salary bill swelled by K3.1 billion from K1.4 billion to K4.5 billion in four years.

Public Service Minister Elias Kapavore said a data-cleansing exercise which had begun should identify positions being duplicated.

The exercise involves the Personnel Management Department in consultation with the departments of Treasury and Finance to verify the huge annual increases to the public sector wage bill.

“The primary records show that the public sector wage bill in 2012 was K1.4 billion. This increased to K4.5 billion in 2016,” Kapavore said.

“While we need the increase in manpower to meet services demands, we must be accountable and prudent in controlling costs and achieving efficiencies.”

Kapavore said the data cleansing exercise would include national and provincial administrations “to establish a one-person, one-position, one-pay status for all public servants”.

“We will make it compulsory for all public servants to be registered through the national identification system,” he said.

“All organisations must improve their staff profiling system to put faces to the names of all public servants.”

Kapavore said he was seeking the cooperation of all sectors to support the government initiative “as we strive to improve productivity”.

Earlier, Kapavore said some public servants around the country were yet to be inducted in the public service system.

“That’s why they don’t know their job descriptions,” he said.

“There are many public servants not been inducted on their roles and responsibility.

“Induction programmes are so important. Once someone is recruited, they must be given their job description so that they will know what is required of them. They must also understand the General Orders and Parliament Acts.”

PM APPLAUDS ABEL FOR BUDGET

BY : Post Courier

Prime Minister Peter O’Neill has commended his deputy and Treasurer Charles Abel for successfully handing down the 2017 Supplementary Budget in Parliament yesterday.

“I commend the Treasurer as this is his first budget/money plan. There are now some renewed sense of energy in Treasury and of course as a result of that you can see some real drive into outstanding issues like over expenditure by public servants. The Treasurer is definitely getting things back on track.”

Mr O’Neill said that development is taking place across the country in the areas of infrastructure, health and education. “This is only the beginning and we will make sure we deliver before this term expires,” he said.

“You see, when we came into office in 2012, we built major infrastructure that you see now,” he said.

“If we did not build these infrastructure, the recession will be far worse than today.”

Mr O’Neill said the National Alliance-led government was in control for 15 years and they handed out about seven supplementary budgets when they had surplus, but never built any infrastructure.

“To date, they still can’t name an infrastructure they built, and they left no money in the Trust Account,” he said. “Treasury is the engine room, the heart that controls the body, and you should be very careful.

“It is a fact, that we are all responsible to correct the position when they are course blow outs, to correct it so we set new targets and that is 2.5 per cent of GDP,” Mr O’Neill said.

Tax On Retirement Fund Remains A Challenge

The eight percent tax on employers’ contribution to super funds remains a major sore point in the formal sector.
Bank of Papua New Guinea Governor Loi Bakani admitted the levy remained a challenge.

Mr Bakani said this while discussing how super funds can assist micro banks to drive the process of financial inclusion in the rural areas which a delegate from the summit asked if the tax component from an employer’s contribution of eight percent be pumped into micro finance to generate capital.

As it is, this may not be possible but Mr Bakani said this spurred a need for the central bank as regulator with other stakeholders to dialogue with government for a review and if possible omit the tax.

“The government has been taxing the eight percent which is something that we didn’t want to happen but as we do regulating and overtime we might get the government not to tax the eight percent,” he said.

He said the establishment of super funds was to help workers have access to funds while working and contributing.
“This is an issue of how do you help the members create wealth for themselves while working and getting money out of the super funds.

“How we can help the contributors while working can create wealth for themselves to improve the livelihood and super funds are very much having the direction to help in that part of the inclusion sector,” he said.

Asian Development Bank (ADB) senior financial sector expert Dr Peter Dirou also confirmed that taxation on retirement funds is one of the issues that is faced everywhere including Australia.

“We want the government to keep their hands off our super funds that is our money,” he said.