Monday, 6 July 2009 1:28 PM

NPF Dividend

The SINP is governed by the SINPF Act 1996. Anything to do with its mangement, operations, dividend payment, reporting, etc, etc are subject to the requirments of the Act.

For the dividend payment and Board decision perse, the follwing sections copied and pasted from the NPF Act might give some clues as who might be responsible for deciding the final dividend.

Sections of NPF Act 1996 (source: PacLII)

Rate of interest
11 of 1976, s. 5
8 of 1988, s. 2

8. At or before the end of each financial year, the Board shall, having considered the recommendation of the General Manager, declare a rate of interest in respect of that financial year, being not less than two and one-half per centum per annum and, subject to the proviso to section 22(2), interest shall be payable on the amount standing to the credit of members' accounts as calculated under section 22 at such rate:

Provided that-


(a) no rate of interest exceeding two and one-half per centum per annum shall be so declared unless in the opinion of the Board the ability of the Fund to meet all payments required to be paid under this Act is not endangered by the declaration of such rate; and

(b) no rate of interest exceeding two and one-half per centum per annum shall be so declared if any sums advanced by the Government under section 10 have not been rapid.

Advances by Government

10. If the Fund is at any time unable to pay any sum which is required to be paid under the provisions of this Act, the sum required shall be advanced to the Fund by the Government out of the Consolidated Fund and the Fund shall as soon as practicable repay to the Government the sum so advanced.

Contributions to be paid into the Fund and credited to members

22.-(1) All sums recovered or collected on account of contributions to the Fund under the provisions of this Act shall be paid into or carried to the Fund in such manner as the Board may direct.

(2) The Board shall cause to be credited to the account of each member of the Fund the amount of the contributions paid during each financial year in his respect and, upon the declaration by the Board under section 8 of a rate of interest for the financial year, interest at that rate on the amount standing to his credit in the Fund at the commencement of such financial year in such manner as the Board may direct, and shall deduct from the amount of each member the sum of five dollars, or if the amount standing to such member's account shall be less than five dollars, the amount so standing, and such sums shall be carried to the general revenues of the Fund:

11 of 1976, s. 15


Provided that, where the authority of the Board is granted under section 28 for the withdrawal from the Fund of any amount standing to the credit of a member of the Fund, the amount of interest due from the first day of the financial year in which such authority is given to the last day of the month preceding that in which such authority is given shall be calculated at the rate of interest declared by the Board for the previous financial year and credited to such member before such withdrawal notwithstanding that the rate of interest subsequently declared by the Board in respect of that financial year may be greater or less than the amount so calculated.

(3) For the purpose of calculating any interest due under subsection (2) any fraction of one dollar in the amount standing to the credit of a member of the Fund shall be disregarded.

But for the purpose of analysing if the dividend is fair for members, the financial statements can be analysed if NPF is yet again underpaying members on their invetsment. I wish if members easily access 2008 financial statements so that they independently calculate the returns on their only lifetime invetsment.


Disclaimer: The views and opinions expressed in this letter/article are those of George Kosui and do not necessarily reflect the official policy or position of Solomon Times Online.

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