The Government has made another move towards improving the economy and providing a secure future for the people of Nauru by introducing a new superannuation scheme – Nauru Super.
The fund is for Nauru citizens residing in Nauru or posted overseas by the Government.
From July 1 2018 both the Government (including SOE’s whose payrolls are managed by the government) and employees are required to contribute five per cent of wages to superannuation.
The Government has simultaneously increased wages by the same amount, ensuring a smooth transition with no change to take-home pay on the commencement of the Fund.
The super fund will be administered by internationally recognised fund manager Superlife (New Zealand) and is in addition to the current over 60 and 70 years pension payments.
Finance Minister David Adeang explained that each member will be able to plan for retirement with a level of income to suit their needs and can access the fund at the retirement age of 55 years or older.
Initial contributions of five per cent from employers as well as employees are compulsory, with members able to make voluntary contributions in any amount at any time.
Nauru Super will be rolled out to all employers of five or more Nauruan staff from January 1, 2019.
Photo Loop Nauru Caption: Main street in Nauru