NCSL FACTS

WELCOME TO THE NASFUND CONTRIBUTORS SAVINGS & LOAN SOCIETY - THE NEW AGE OF SAVINGS in Papua New Guinea

Background

The NASFUND Contributors Savings & Loan Society Ltd (“NCSL”) was established in October 2003 as a result of changes made to the Superannuation Act, which disallowed voluntary education contributions to be part of superannuation savings. Through the Savings & Loan vehicle we continue to provide a savings facility for not only education / school fee expenses but for other short term financial commitments as well.

What services does the NCSL provide?

The NCSL offers three saving accounts. The accounts are:

Education Savings	Can only be used for education related or school fee expenses
General (Primary) Savings	Provides security against loans if undertaken
Christmas Savings	Enables savings for the festive season in November and  December (refer to Savings leaflet)

What are the minimum saving amounts for each account?

Education and General Savings respectively have a minimum deposit of K20.00 whether paid on a fortnightly or monthly basis.

Christmas savings is a minimum deposit of K15.00 whether paid on a fortnightly or monthly basis.

Is membership compulsory?

No.

Savings with NCSL is not compulsory. It is a voluntary savings scheme that gives you flexibility to access your savings to fulfill your urgent financial commitments such as school fees, bride price, funeral expenses and so forth.

Who is eligible to join as a member of the NCSL?

Any person who is a contributing member towards superannuation with NASFUND Ltd or the Aon Master Trust and is not an active financial member of another Savings & Loan Society.

If I am already a member of another Savings & Loan Society can I still join the NCSL?

No.
The Registrar of Savings & Loans disallows members of joining more than one society. If you wish you may cease your membership with another society and transfer your savings to NCSL.

Can I transfer my superannuation saving to my NCSL account?

No. Your superannuation savings are totally separate and independent of your NCSL savings. You cannot transfer your superannuation funds to NCSL while you are an active member of NASFUND.

Does NCSL offer loans?

Yes. There are two forms of loan offered by NCSL.

The lending ratio 1:1 or kina for kina basis for general purposes. If you have K1000.00 in your general savings you are allowed to borrow a maximum of K1000.00. This is to safeguard you and the Society in the event you are not able to repay your loan. Your savings is your security.

The lending ratio 1:2 as approved by the Registrar of Savings & Loan Societies. In this case, if you have K1000.00 you are allowed to borrow up to a maximum of K2000.00. This facility is limited to cover education expenses and emergency cases such as death and medical expenses only. The security against this lending is a written undertaking produced by a member’s employer to pay to NCSL the member’s “long service leave” or “severance entitlements” in the event they leave employment or are not able to repay the loan on ratio 1:2.

What is the loan interest rate?

The interest rate charged is 1% per month on the unpaid or reduced balance of a loan. All loans plus interest must be paid within 24 months.

Does the NCSL pay interest on Savings?

Yes. The society is required to pay interest on savings based on the surplus (profit) made each year.

What are the rules for withdrawing savings if I am not taking a loan?

1.	Members may withdraw up to one half (½ or 50 %) of their net total savings balance in their General Savings Account and only one withdrawal per month is allowed.
2.	The minimum amount that a member shall withdraw from the General Savings Account is K200.00. No amount less than K200.00 shall be permitted for withdrawal.
3.	The minimum amount a member shall withdraw from their Education Savings Account is K50.00. A minimum holding balance of K50.00 in the Education Account must be maintained.
4.	The minimum amount that a member shall withdraw from their Christmas Account is K20.00. A minimum holding balance of K20.00 must be maintained.
5.	A member with a loan balance that exceeds 50 % of their total of general saving account, shall not be allowed any savings withdrawal.
6.	A refund of savings or a full exit shall fall due, 3 months after the last contribution. A exit fee of K20.00 will be charged.

How will I know my money is safe?

We give you peace of mind and comfort with the unique way in which we will manage and administer the affairs and operations of the society. All key functions are outsourced to professional service providers.

·	Aon Consulting (PNG) Ltd provides the back office administration (allocating and cheque processing)
·	External audit carried out by KPMG a reputable and professional accounting firm.
·	Investment management carried out by BSP Capital Stockbrokers Ltd

Commitment to good governance, prudential management and customer- oriented service is what we are known to deliver.

 

For further information please direct all your enquiries to:  Manager  NASFUND Contributors Savings & Loan Society  P.O Box 7732  Boroko, Papua New Guinea  Ph: 325 7166 or 323 0773  Fax: 3256347  Email: operationsncsl@ncsl.com.pg For lending enquiries please email Bernard Geita bgeita@ncsl.com.pg