Monday 28 May 2023 Apia Samoa. There has been a flow of mixed messages from the SNPF Board and Management regarding the superannuation fund’s lending policies.
Last week the SNPF Chairman Papalii Panoa Tavita Moala had announced that a change to lending products available to contributors was coming. He called a press conference for 2pm today (Mon 28th) to convey what those changes would be.
However this morning, a short public notice signed by the Board & Management cancels the press conference and states, “our lending policies have not changed”.
Papalii was a former Chief Executive Officer of the SNPF who has been openly vocal in expressing his strong public opinions against the way the organisation was led by CEOs who had come after him.
In a statement issued last week and reported by the Samoa Observer, Papalii Panoa is said to have announced changes, suggesting the removal of some lending options to the public.
However, this morning the public notice signed by “Board and Management” sends a conflicting message, suggesting a rift within the governing body of the multi-million tala Samoa National Provident Fund.
The SNPF is a wholly government owned entity publicly funded by all employees and employers of the formal sector across Samoa.
For each dollar earned as salary or wages, it is compulsory by Law to contribute 10% – cut from employees wages – with a matching 10% contribution added by employers.
Essentially the SNPF receives an amount that is the equivalent of 20% of all wages earned in Samoa.
It is similar to New Zealand’s Kiwi Saver except that in Aotearoa and also in Fiji, the contributor has an option as to which Superannuation Fund they choose to lodge their savings with.
The benefits of the compulsory saving to most contributors is the ability to lend from one’s balance.
Lending products available to SNPF contributors includes Small Loans, Short Term loans, Educational loans to finance childrens school fees, and Professional/Career Development.
