Tuvalu NPF_FORUM_Tuvalu by qingyunliuliu

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									TUVALU NATIONAL PROVIDENT FUND
 PACIFIC PROVIDENT FUND & SOCIAL SECURITY FORUM
MEETING, PORT MORESBY, PAPUA NEW GUINEA: 22 – 24th
                  AUGUST 2011

Theme: “Lifting Fund Performance to Build a Stronger Pacific Community -
                     What Actions Are We Taking”




                                                 Presenter: Siava N Tekafa (Mrs)
                                                    Acting General Manager & CEO
BACKGROUND

   Tuvalu National Provident Fund was established in April 1984, when the TNPF Act 1984 came
    into effect. To begin operations in 1984, two (2) staff were employed, a Manager and a Clerk.

   Current number of staff employed by the Fund is 19 (12 in main office, 7 on the remote outer
    islands).

   A grant of $500,000 was donated by the British Government to help start the Fund. Majority of
    funds were for Government workers gratuity pension rights transferred to the Fund.

   Total members fund as at 31st July 2011 - AUD$36 million.

   Active membership – 3,859 members (July 2011)

   Registered membership – 6,492 members (July 2011)

   Contribution Rate : 13% Employee / 10% Employer (Effective 1/7/2009)

   Tuvalu has a population of around 10,000.
TNPF ORGANISATIONAL STRUCTURE




                      Loan Recovery Officer
VISION & MISSION
                                  Vision

‘To continuously provide the highest achievable standard of
   benefits and services to members’

                                 Mission
‘To invest productively the contributions received so members and their
    dependants can obtain the greatest benefit of their lifetime during and
    before retirement and to ensure the corporate duties of the Fund in
    particular the registration of members, collection of contributions,
    enforcement of compliance, providing of customer services and
    payment of benefits are delivered efficiently and effectively’
TNPF Investment Strategy (Portfolio) as at 31
            July 2011 (Cont’d)




                                                              Australian Equity
                                                   Cash             11%
                      Loans to Members              5%
                            22%
                                                                                  International Equity
                                                                                         16%
                                                                                        Hedge Funds
                                                                                            2%

            International Bonds                                                          Global Property
                    9%                                                                        4%
                                  Australian Inflation Linked                Special Funds
                                           Bonds                                 5%
                                              8%          Australian Bonds
                                                                18%
 Growth of Members Fund over past 11 years


                               Growth of
Year        Total Number       Members     Total Members
       of Registered Members      (%)       Balances (A$)
1999            3,573             0.99       10,727,919
2000            3,726             4.28       12,918,586
2001            3,859             3.57       14,707,376
2002            4,267            10.57       15,313,348
2003            4,892            14.65       18,035,826
2004            5,343             9.22       21,623,307
2005            5,626              5.3       24,322,730
2006            5,851               4        28,004,214
2007            6,227             6.42       31,089,756
2008            6,585            5.74        29,070,897
2009            6,773             2.85       33,520,594
2010            6,449            -4.78       36,064,320
 Net Annual Contributions over 11 years

Year    Contributions   Withdrawals*   Net Contributions
1999      1,596,799      1,209,149          387,650
2000      2,554,855       833,657          1,721,198
2001      2,624,234       964,240          1,659,994
2002      2,994,661      1,468,581         1,526,080
2003      3,815,165      1,649,806         2,165,359
2004      3,220,414      1,426,843         1,793,571
2005      2,867,305      1,811,933         1,055,372
2006      3,435,203      1,640,297         1,794,906
2007      3,448,518      1,892,600         1,555,918
2008      3,936,902      2,675,294         1,261,608
2009      3,907,439      3,148,940          758,499
2010      4,230,324      3,455,983          774,341
                       Trends in the growth of
                          members Fund.
                     8000
                     7000
Registered Members




                     6000
                     5000
                     4000
                     3000
                     2000
                     1000
                       0
                            Year   1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


                                                           Years
                                 Trends in Contributions vs
                                       Withdrawals
                    4,500,000
                    4,000,000
                    3,500,000
Dollar Amount ($)




                    3,000,000
                    2,500,000                                                                                       Contributions
                    2,000,000                                                                                       Withdraw als*
                    1,500,000
                    1,000,000
                     500,000
                           0
                                1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010
                                                                     Years
     LIFTING FUND PERFORMANCE TO BUILD A
     STRONGER PACIFIC COMMUNITY – WHAT
            ACTIONS TNPF IS TAKING?

   Tuvalu National Provident Fund since inception in 1984 have tried a number of
    tactics to build the Fund into a stronger and reliable Fund locally and Regionally
    and Internationally if possible.
   Therefore, to help answer the THEME question, management in this
    presentation, highlights some of the recent strategies that have been adopted in
    terms of:
                  SERVICE DELIVERY
                  CORPORATE GOVERNANCE
                  FUND ADMINISTRATION
                  INNOVATION & TECHNOLOGY
                  LEGISLATIVE REFORMS
                  JOINT INVESTMENTS
           SERVICE DELIVERY
   Computerizing of all the Fund’s records enhance the
    services to members
   Establishing Customer Service Department (2008)
    allows members’ enquiries and concerns to be
    addressed or looked into at the earliest.
   Allowing TNPF Staff to expose to other Pacific Funds
    such as Samoa, Tonga, Fiji, Vanuatu has helped Staff
    become efficient and effective in their duties.
   Establishing a webpage for TNPF is another way of
    enhancing our service delivery.
    CORPORATE GOVERNANCE
   The Fund since inception had always tried to administer the Fund with
    good governance.
   Have in place all the necessary documents such as; Code of Ethics for
    both Directors & Staff, Corporate Plan (3years), Staff Terms &
    Conditions, Annual Budget, Investment Strategy Framework (5years),
    Administration Manual extras.
   Management Board of the Fund meets every month and its minutes
    and decisions are recorded and kept in a safe place for references
   The Funds Accounts are audited annually and an annual report is
    tabled in Parliament every year, usually April of every year, except for
    this year, the 2010 annual report was not tabled as there was no
    Parliament session due to political upheaval.
   The Board’s decisions on dividends and matters related to members
    are always announced for members information over Radio Tuvalu.
   In addition, the Fund runs radio spots continuously on matters that
    management feels there is a need for members and public to be aware
    of and be educated at the same time.
     FUND ADMINISTRATION
   Prioritize Proper Identification of all
    members in early 2006 – Not accepting
    unregistered members in the system
   Computerizing of all records by
    purchasing a tailor made software from
    the SOFTWARE Limited in Suva, Fiji
   Allow 2 working days for processing of
    all members benefit withdrawals…
       INNOVATION AND TECHNOLOGY

   New Members Plastic ID Cards
   Improved Fund Management System that
    accommodates the management of members three
    different accounts namely: (1) Members Retirement
    Account; (2) Members MEDU Account; and (3)
    Members Loans Account.
   Interlink of the Fund Management System with the
    MYOB Accounting package
   TNPF Website (under designing and construction) –
    this will make information and services available and
    accessible to members 24 hours, 7 days from
    anywhere
LEGISLATIVE REFORMS
   There have been recent legislative changes
    (Amendments to the Provident Fund Act) made to
    the TNPF processes with the ultimate focus to
    achieve the following:
   Extend coverage to the unregulated sectors such as
    Tuvaluan Seafarers performing contract of
    employment outside Tuvalu on Merchant Ships;
   Abolishment of controversial member’s benefits (e.g.
    the Member’s Home Benefit which was formerly
    known as the Women’s Home Benefit; and
   Introduce more working-life benefits needed by
    members (the working population) and their families
Extension of PF Coverage to
Seafarers

   Seafaring is a big business in Tuvalu as seafarers make up a significant portion of our
    country’s total employment.

   Our Concern – No compulsory coverage for our seafarers. The Fund has made a lot of noise
    on the issue and the issue has been finally resolved.

   After many years of waiting, a new Act has been finally passed in Parliament and has come
    into effect 1st September 2009.

   The new Act requires every Tuvalu seafarers employed on merchant ships under a contract
    of service through Agents of offshore ship-owners shall be covered and shall be liable to
    pay contributions at the amount of 10% to the Fund, while the same law allows the
    recruiting companies to make a matching contribution towards their employees at any rate
    they wish to contribute and the ship-owner’s agent is also liable to make sure these
    contributions are remitted to the Fund every month.
MEDICAL & EDUCATIONAL BENEFIT
(MEDU)
 A new law (Act) now requires all employees to increase their contributions by 3%, bringing
 the total employees contribution to 13%. The Employers contribution on the other hand
 remains at 10%, bringing the total contribution rate to 23%. The new Act provides a legal
 framework for the set up of a new medical and educational benefit saving scheme for all
 contributing members of the Fund.

 The new Act came into effect from 1st July 2009 and all contributing members of the Fund
 shall compulsory contribute toward the new MEDU saving scheme. Members effective from
 1st January 2010 will be able to access (source funds) from their MEDU saving scheme to
 meet their medical health care and educational expenses. The new MEDU saving scheme
 will be restricted for health and education expenses of contributing TNPF members and
 their immediate dependants (spouse and children).

 The members balances in their MEDU savings accounts will be made available to meet
 medical health care and educational needs of all members and their dependants (spouse &
 children), provided the members applies to access their funds and that a member qualifies
 to do so under certain conditions that have been laid out for the proper administration of
 this new MEDU Saving Scheme.
JOINT INVESTMENTS
   Joint Investment with the LOCAL GOV’T
    in 2009
   Piloting a Public Infrastructure
    Investment – TNPF MUNCIPAL MARKET
   In 2007, management and Board
    looked into possibilities of Investing in
    Property Offshore, especially in Fiji and
    New Zealand but was suspended during
    the GFC
                  CONCLUSION
   TNPF management;
         Will continue to explore and learn on new
          experiences that come its way for the
          betterment of the Fund.

         Consider Joint Investments between Provident
          Funds as a way forward for the Fund and a
          way to Build a Stronger Pacific Community.
      END OF PRESENTATION


   FOR QUESTIONS PLEASE email:
    tnpfgm@gmail.com


   FAKAFETAI LASILASI

								
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