NATION

Retirement Pension Product Rates Increases

The Fiji National Provident Fund has  reviewed and increased its Term Annuity retirement product rates. Retirees who intend to buy this product are expected to benefit immensely. The new term
31 Oct 2015 11:29
Retirement Pension  Product Rates Increases

The Fiji National Provident Fund has  reviewed and increased its Term Annuity retirement product rates.

Retirees who intend to buy this product are expected to benefit immensely.

The new term annuity rates were determined based on recent Reserve Bank of Fiji (RBF) yield curve report, offering an improved rates reflected by the current market.

The Term Annuity retirement product is designed to offer alternative retirement product option to meet the needs of retiring FNPF members.

Members who buy the product, or the annuitant, is free to opt for a 5, 10 and 15-year pension term and is to receive a monthly pension payment with interest that reflects the current market and the Fund’s investment return for the term of the annuity.

Tevita Nagataleka, FNPF assistant general manager PRIME services, said the review ensures that retirees who purchase Term Annuity retirement product are fairly charged for the guaranteed pension payments they are purchasing.

“One must understand that the amount of monthly term annuity payment that can be provided by the Retirement Income Fund will depend on the investment returns available for the term of annuity. The returns are being closely monitored by the Fund so that annuity rates reflect this.

“As an investment product, rates may change from time to time to be consistent with the market movement. The new rates will only apply to retirees who opt to take up the term annuity product from the date the rates are implemented and there will be no effect on existing annuitants who are already receiving payments from this annuity product.”

Mr Nagataleka added that changes in rates are made under strict business regulations to ensure that, on average, no cross subsidy to or from other funds or business of the FNPF should occur.

The new rates will come into effect on Friday November 6, 2015.

The product makes regular monthly payment to an annuitant, the person who purchases the product, for a fixed term of either 5, 10 or 15 years (see top infographic)

Should the annuitant die before the end of the fixed term, payments will continue to be made to the person nominated by the annuitant (the nominee) until the end of the term. The nominee can apply to have the remaining installments exchanged for a lump sum at a rate set by the Fund.

Fiji National Provident Fund

jyotip@fijisun.com.fj

 

 

 

 

Fijisun E-edition
Advertise with fijisun
Subscribe-to-Newspaper
Fiji Sun Instagram
Fiji Plus
Subscribe-to-Newspaper
error: