N.P.F. supports Govt. pension moves

By Joyetter Feagaimaali’i-Luamanu ,

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N.P.F. Chief Executive Officer, Pauli Prince Suhren.

N.P.F. Chief Executive Officer, Pauli Prince Suhren. (Photo: Samoa Observer)

The National Provident Fund is supporting moves by the Government to increase percentage and pension benefits for all contributors to the superfund.

The position of the National Provident Fund (N.P.F.) was relayed to the Ministry of the Prime Minister and Cabinet in a letter dated August 3, 2018. It was written by the N.P.F. Chief Executive Officer, Pauli Prince Suhren and addressed to Agafili Shem Leo, the C.E.O. of the Ministry of the Prime Minister and Cabinet.

The letter from the C.E.O. had the subject “Recommendation by the Office of the Remuneration Tribunal”. It highlighted the position of the superfund on the proposed cost of living adjustment for public sector remuneration, and that of the proposed increase in the monthly pension amount under the senior citizens benefit fund as administered by the N.P.F.

Pauli said the superfund is fully supportive of the proposed increase of circa 30 per cent over the next few years, starting with a 10 per cent rise in January 2019. 

“It is to be noted that the Fund has plans to increase the contribution percent paid by employers and employees from the current 7/7 percent to 10/10 percent to be effective in one form or other from as early as July 2019. 

“This would further contribute to increase the cost of living and is all the more reason why the fund fully supports the tribunal’s recommendation,” he said.

The N.P.F. stated that it also supported the proposed move by the Ministry of the Prime Minister and Cabinet to increase the senior citizens’ pension from $135 to $145 per month, the Fund supports it in principle. 

“However, it is to be noted that the current budget for financial year 18-19 is based on the current amount, and any change would necessitate inclusion and endorsement in the Ministry of Finance’s supplementary budget due later this calendar year.

“The Fund stands ready to support and help implement whatever the Cabinet ultimately decides,” he added. 

 

Letter printed verbatim below 

 

3 August 2018

Agafili Shem Leo

Chief Executive Officer

Ministry of Prime Minister and Cabinet

APIA

 

Afioga e,

 

Re: Recommendation by the Office of the Remuneration Tribunal 

Thank you for the letter from your office dated 31 July 2018 seeking our general position on the matter of the proposed cost of living adjustment (COLA) for public sector remuneration and that of the proposed increase in the monthly pension amount under the senior citizens benefit fund as administered by SNPF.

Our position on the two matters is as follow;

 

• On the matter of the proposed COLA, the Fund is fully supportive of the proposed increase of circa 30% over the next few years beginning with a 10% increase in January 2019. It is to be noted that the Fund has plans to increase the contribution % paid by employers and employees from the current 7/7 to 10/10 to be effective in one form or other from as early as July 2019. This would further contribute to increase the cost of living and is all the more reason why the fund fully supports the tribunal’s recommendation.

 

• On the matter of the proposed increase in the senior citizens’ pension from $135 to $145 per month, the Fund supports it in principle. However, it is to be noted that the current budget for FY 18-19 is based on the current amount and any change would necessitate inclusion and endorsement in the Ministry of Finance’s supplementary budget due later this calendar year.

 

The Fund stands ready to support and help implement whatever the Cabinet ultimately decides.

 

Faafetai tele.

 

Your sincerely,

Pauli Prince Suhren 

CHIEF EXECUTIVE OFFICER 

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