The Defined Benefit Scheme is a legacy superannuation plan originally established for members of the PNG Defence Force.
Under this scheme, your retirement benefit is idetermined by a formula based on your final salary and the total number of years you have served.
The Defined Benefit Scheme closed to new members in January 2016 but continues to manage benefits for eligible members who joined before that date.
The State pays 60% of Lump Sum benefits and pensions on a member’s retirement.
Members contribute 6% or more (maximum of 15%) of their fortnightly salary.
Members with less than 20 years of service do not have an employer benefit and receive their contributions plus accrued interest.
Members discharged from the PNG Defence Force can access their funds after dismissal, resignation, or retirement. The benefit depends on the years of service and final salary as determined by the Defence Force Retirement Benefits Act and relevant superannuation legislation in Papua New Guinea.
The government funded portion of your benefit and the interest accrued is taxed.
Pensions are subject to salary and wages tax, under the Income Tax Act 1959.
Members of the Defined Benefit Scheme enjoy a range of valuable benefits tailored to their service:
Your retirement payout is calculated using a formula based on your final salary and total years of credited service, offering peace of mind with a predictable benefit.
After five years of continuous contributions, members can access a housing advance to assist in building or purchasing a home.
Contributions and fund earnings are professionally managed to support the sustainability of the scheme and member benefits.
