For most members of CTSL, superannuation is not something you think about every day.
You contribute while you serve, you trust that it’s being managed properly, and you expect that when the time comes, it will be there for you and your family.
Between July 2019 to January 2023 that trust was tested — and rebuilt.
The regulator BPNG terminated the trustee board of CTSL and appointed statutory management to review the solvency of the Defence Force Retirement Benefits Fund (DFRBF) and restructure the Fund’s governance. That meant the regulator was overseeing the fund to ensure governance and financial discipline were firmly in place.
It was a period of caution.
Global markets were still unsettled after COVID-19. Property values were soft. Liquidity had to be carefully managed. The focus was not on expansion or aggressive growth. It was on protecting what members had already earned.
That year, the fund’s assets stood at around K615 million. The interest credited to members was 2 percent. If you had K100,000 in your account, it would have grown by about K2,000. It was stable, but not exciting. The priority was simple: safeguard member savings.
In 2022, signs of improvement began to appear. Assets rose modestly to about K630 million. Profit improved. The interest crediting rate edged up slightly to 2.3 percent. On the surface, that still looked like slow progress. A K100,000 balance would have earned about K2,300 that year — not a dramatic jump.
But the real story of 2022 was happening behind the scenes.
The fund tightened its operations. Costs were brought under better control. Audits were completed earlier. Governance processes strengthened. A transition toward a permanent Board was underway. In practical terms, this meant more discipline in how money was managed and spent. When a fund reduces unnecessary costs, more of its investment earnings flow directly into members’ accounts rather than being absorbed by administration.
2022 was not a breakthrough year for returns. It was a rebuilding year. Foundations were being reset so that the fund could grow more confidently in the future.
Then came 2023.
For members, this was the year the recovery became visible. Assets climbed sharply to around K714 million. Profit rose significantly. The interest credited to members increased to 7.3 percent — more than three times the rate in 2021.
If you had K100,000 in your account, you would have earned about K7,300 in 2023 alone. That kind of return makes a noticeable difference when it compounds over time.
This stronger performance reflected several positive shifts coming together at once. Domestic shares performed well, particularly dividend-paying stocks. Investment income improved. Costs remained under control. Contributions into the fund strengthened. And importantly, a permanent Board was appointed in 2023, marking the end of statutory management and the beginning of a more stable governance phase.
The journey from 2021 to 2023 shows how recovery in superannuation rarely happens overnight. First, risk is contained. Then systems are strengthened. Only after that does meaningful growth return.
To put it simply, if you started 2021 with K100,000 in your account, after three years of credited interest your balance would have grown to nearly K112,000. Most of that growth occurred once the fund moved from defensive positioning into recovery mode.
There are still challenges. Membership numbers have gradually declined over the period. The fund remains smaller than PNG’s largest superannuation funds. Property investments continue to face a soft domestic market. Defined Benefit liabilities depend partly on ongoing State contributions.
But compared to where CTSL stood in 2021, the position by the end of 2023 was clearly stronger. Assets had grown by nearly K100 million. Costs were far better controlled. Governance structures were stabilised. Liquidity improved. Returns strengthened.
For members, the story is straightforward. In 2021, the fund focused on protecting your savings. In 2022, it rebuilt internal strength and discipline. In 2023, that discipline translated into real growth in your account.
Superannuation is a long-term journey. It is measured in decades, not single years. But the period from 2021 to 2023 shows that steady management, careful reform and disciplined investment can move a fund from uncertainty to recovery.
And for CTSL members, that shift matters — because behind every percentage point is your retirement, your family’s security, and the years you’ve worked to build it.
