The welfare scheme established in July 2012 released its first annual report recently, when its Chief Executive Officer Dr S. Leimoni Taufu'i stated that, “there are still more than 300 businesses and 4,000 employees, including the daily workers to be registered in the next two years.”

The report stated that in 2012-13 a total of $6,157,543 pa’anga had been collected for the operation, while voluntary contributions from employers and members totalled $193,179 pa'anga.

The funds had been invested in the domestic market. Term deposits made with three local banks totalled $5.85 million, being the Tonga Development Bank ($4.85 million), MBf Bank ($500,000), and Westpac Bank of Tonga ($500,000).

The Fund earned $60,988 pa'anga from the investment of the fund.

“Return on investment was 3 percent and the board declared the whole 3 percent to be credited to members' accounts at 1 July 2013,” the report stated.

Donor support

During its first year the setting up and administration of the scheme has been totally supported by donor funding.

The NRBF running costs amounted to $850,757 pa'anga. This included general expenses of $359,848, employees payments $324,017, board members payments $62,475, purchase of property and equipment $54,415 and members insurance premiums $50,000. 

“The first year of the National Retirement Benefits Fund may not have been successfully operational without the financial assistance and unreserved support from the Government of Tonga, UNDP, the People's Republic of China, and the European Union,” stated Dr Taufu'i. He said that financial assistance from these donors had helped to renovate the outer islands branch offices and quarters, and assisted with the establishment of infrastructure, recruitment of board members and training of staff. 

The  donor support included $808,047 from the Tonga government and $60,165 from the European Union for capacity building.

Retirees

According to the report 36 members retired during the year and payments to them amounted to $101,749.08. The highest sum of retirement benefits was received under death claims, amounting to $60,445.66 for ten deceased members.

The National Retirement Benefits Fund was an initiative of the National Retirement Benefits Scheme Act 2010 aiming to, “provide benefits in respect of the retirement, permanent and total disablement or death of a member of the Fund as required by the Act and Regulations”. It applies to “employees of all businesses and organisations that employ one or more employees and received wages/salaries for their services”.

Both employers and employees are required to contribute 5% of employees earnings to the fund.

“The enforcement of the NRBS Act 2010 and NRBS (administration) Regulations 2012 and ensuring that employers are registered and comply with the Act is an important aspect of the Enforcement Division,” the CEO stated.

The report is confident of the fund’s ambitions, stating that “As the fund develops its facilitative role of generating investment for the future development and stability of the country, will become a major strategy for the board.”

Dr Taufu'i stated that the scheme was also encouraging families living overseas to contribute to their parents or families retirement accounts.

The scheme's administration composes 21 staff including 16 permanent staff, one agent, and four daily paid workers.

Members of the National Retirement Benefits Fund Board are Rev.Tevita Havea (Chairman), Peseti Ma’afu (Employers Rep), Latafaingata’a Tangimana (Employees Rep), ‘Aisea Taumoepeau (Minister of Finance’s Appointee) and Dr Leimoni Taufu’i (Secretary of the Board).