The National Provident Fund is a compulsory saving scheme for establishments in the private sector having greater than 25 employees.
The Provident Fund’s main purpose is to insure its beneficiaries and their families against loss of income due to: loss of employment, disability, retrenchment, death and retirement The Fund also assists with housing advances and emigration.
The National Provident Fund Board of Trustees is financed by contributions of a compulsory 5% employee and 7% employer net salary deduction. Employees have the option to increase voluntarily their 5% salary deduction up to 10%.
The Fund’s assets at the 1994 year end were K137 million. That makes it the second largest Superannuation Fund in Papua New Guinea. It is estimated that the total assets of the fund will double by the year 2000, given its current capacity to grow at 25 % per annum.
The National Provident Fund was established by an Act of Parliament in January 1982 and is governed by a tripartite Board of Trustees, consisting of representatives of employers, employees and the government. It is administered by the Managing Director as Chief Executive of the Board of Trustees.