A bold superannuation reform aimed at enhancing retirement benefits and financial security for Papua New Guineans has recently been announced by Prime Minister James Marape. The changes, announced in a recent address, are designed to modernise the superannuation system, improve long-term wealth accumulation, and expand retirement savings access to more citizens.
Marape highlighted that the current superannuation framework needs urgent reform to ensure that workers receive adequate financial support after their active employment years. The proposed measures include increasing employer contributions, enhancing member benefits, and introducing voluntary savings options for informal sector workers who are currently excluded from the formal superannuation system.
“We must create a superannuation system that not only serves those in the formal workforce but also empowers those in the informal economy,” Marape was quoted as saying in PNG Business News. “This reform is about financial independence, wealth creation, and ensuring that our people have dignity in retirement.”
One of the key components of the reform is the introduction of micro-pension schemes, allowing small business owners, farmers, and self-employed individuals to contribute towards their retirement. Additionally, the government is exploring tax incentives to encourage higher employer contributions and voluntary top-ups by employees.
The reform is also expected to attract foreign investment into Papua New Guinea’s financial sector, as the strengthened pension fund structure will offer a stable investment vehicle for both local and international investors. The proposed digitisation of superannuation accounts will also help streamline payments and ensure greater transparency.
The government has assured workers that existing superannuation balances will not be impacted negatively, and the reforms will instead provide more flexibility in withdrawals and investment choices.
The National Superannuation Fund (Nasfund) and Comrade Trustee Services Limited (CTSL) have welcomed the reforms, calling them a step towards financial sustainability for PNG’s workforce.
