National Superannuation Fund (NASFUND) CEO, Ian Tarutia, said persons can be fined up to half a million Kina if found to be in breach of the Superannuation Act.
Under the Superannuation Act, there are strong penalties that can be imposed on people who do not comply.
One of them is the non-remittance of member contributions by employers.
“There is a legal process that is undertaken, and the ramifications for that are quite severe under the (Superannuation) Act; in fact it’s about half a million kina that the directors or officers of those establishments can face as penalties, if they have found to have breached the provisions of the Super Act.
“So, in that particular instance, if deductions have been made and they have not been paid across, they will be classified as a default employer that will trigger a process where a reminder notice is sent out from our office followed up by some follow ups, and if that doesn’t achieve an outcome, then the legal formalities kick in,” said Tarutia.
NASFUND announced a crediting rate of 6.3 percent, representing K310 million which will be paid to members’ accounts over the weekend.
Members whose contributions have not been remitted will miss out on being credited.
“Say contributions have been paid up to July, for argument’s sake, the allocation of interest will cover the contribution up to July for example, last year. The following amount for the rest of the year they will miss out because obviously there is not physical cash received.”
Tarutia is urging all its members to follow up with their contributions on NASFUND’s online platform, including the mobile app.