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Introduction of non-contributory units of pension for contributors to Papua and New Guinea superannuation fund



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INTRODUCTION OF NON-CONTRIBUTORY UNITS OF PENSION

FOR CONTRIBUTORS TO PAPUA AND NEW GUINEA SUPERANNUATION FUND

(Statement by the Minister for External Territories, the Hon. C. E. Barnes, M.P.)

_ The Minister for External Territories, Mr Barnes, said today that the Papua and New Guinea House of Assembly would be asked to consider an amendment to the Superannuation (Papua and New Guinea) Ordinance to provide for non-contributory units of pension for overseas permanent officers.

Barnes said that the Territory superannuation scheme, like the Commonwealth Superannuation Scheme required the full employee's share of the cost of additional units of pension to be met by the contributor over the remainder of his career, however short that may be. Officers of the Public Service were often faced with hardship in taking up entitlements accruing to them in the later stages of their cafeers.

$he proposal for the Territory would follow broadly the principles of the Commonwealth Superannuation Scheme nonĀ­ contributory units. .

Mr Barnes said the value of a non-contributory unit would be equivalent to the employer's contribution to a unit of pension. It would be available on retirement at age 60 (age 55 for females) or on retirement on grounds of invalidity.

An actuarial equivalent value would be paid on retirement at the earlier age of 55 (age 50 for females).

Widows benefits would also be paid, on the basis of 5/8th of the entitlement of the contributor or pensioner.

. _ The entitlement would be automatic where a contributor eligible to do so elected not to contribute for additional units so long as he was contributing for the minimum number of units defined in the legislation. Contributors who had previously been obliged to neglect units becoming available to them would also have an automatic entitlement, subject to satisfactory medical evidence. .

Mr Barnes pointed out that this proposal provided further incentive for overseas permanent officers to continue to serve in the Papua and New Guinea Public Service instead of seeking early retirement.

CANBERRA A.C.T.

PORT MORESBY. T.P.N.G. 5 August, 1970

D.T. 5308/67