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Reason for difference in Nasfund balances..does this make sense?

May 4 2012 at 4:13 PM
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Reason for difference in Nasfund balances
Source:
The National, Friday 4th May 2012

SEVERAL Nasfund members have been querying why their balances have gone down after a 2% interest was credited to their accounts.
Members’ total balance as at Dec 31, 2011, included an interim crediting rate of 3%, which was applied before the actual annual interest rate is determined by the board.
This rate is based on the expected year-end net profit and is usually a conservative estimate of anticipated annual interest.
As a result, balances were rolled over into 2012, including the 3% interim crediting rate.
The 2011 interest based on last year’s financial results was 2%. Since this is less than the interim rate of 3%, an adjustment had to be done.
The new interim interest rate is now 1.5% and this has been adjusted retrospect to Jan 1, 2012.
Therefore, members will see a reduction in the 2011 interest component of their total balance.
It is important to note that principal member and employer contributions are untouched.
We assure members that your funds have not gone missing nor has there been a write down.
The adjustment was necessary as the interim rate cannot exceed the annual interest crediting rate.
For further clarification or information, please contact the following:
. Team Leader of Operations
Phone: 3241826
Email: daopi@nasfund.com.pg
. Acting Chief Operating Officer
Phone: 3241844
Email: cgilichibi@nasfund.com.pg

Nasfund
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Response TitleAuthorDate
 Re: Reason for difference in Nasfund balances..does this make sense?RodMay 5, 2012, 5:25 PM
  Re: Reason for difference in Nasfund balances..does this make sense?knkMay 5, 2012, 11:00 PM
  Re: Reason for difference in Nasfund balances..does this make sense?knkMay 5, 2012, 11:00 PM
   same reasons as NamabawnErikMay 6, 2012, 5:14 PM
    Re: same reasons as NamabawnNasfund contributerMay 7, 2012, 8:23 PM