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FNPF Reform Achieving Purpose

September 09
08:38 2014

Following the Fiji National Provident Fund Reform in 2012, the FNPF board has been able to progressively increase the interest rate credited to members by 15 per cent.

When the FNPF Reform was carried out in 2012, the interest rate was five per cent.

It then went up to 5.5 per cent in 2013 and 5.75 per cent in 2014 with a total of $175 million interest being credited to members on June 30, 2014.

These figures essentially illustrates that the FNPF Reform has achieved its purpose, the fund said.

The fund said the rates prove that FNPF is on the right track, investing and growing members’ funds for their retirement.

These figures have been released following the announcement of the fund’s financial results for the year ended June 30, 2014.

Pension Reform

Meanwhile, the fund’s annual report summary also revealed that 1404 pensioners earning between $5 and $99 a month, before the pension reform, are now all getting $100.

Also, 2919 pensioners continued with their existing pension and were affected as a result of the pension reform.

However, the 1828 pensioners affected were given two options; take lump sum of their original pensionable amount or joint new sustainable age-based pension product with a top-up offered. 3323 pensioners opted for lump sum withdrawal and were paid a total of $126 million.

Fund’s focus

FNPF chairman, Ajith Kodagoda, in his report, said with the pension business on a sustainable footing, the fund can now focus on building member balances. This, he said was to ensure the capability to provide an income contribution for their sustenance during retirement.

“We will, increasingly, be emphasising crucial member awareness programmes as we target voluntary membership for those in the informal sector as well as down to school children as young as six years old,” he said.

“The fund will continue to explore opportunities to introduce new products for members and pensioners, whilst working on building capacity for financial literacy and well-being both before and after retirement.”

Feedback:  rachnal@fijisun.com.fj

 

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