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6.35% Interest For Fiji National Provident Fund Members

Members will wake up to new FNPF balances tomorrow. This follows an announcement by the FNPF Board. The Board has declared an annual interest of 6.35 per cent for the
30 Jun 2017 12:27
6.35% Interest For Fiji National Provident Fund Members

Members will wake up to new FNPF balances tomorrow.

This follows an announcement by the FNPF Board.

The Board has declared an annual interest of 6.35 per cent for the financial year which ends today.

About $270 million will be credited to members’ accounts this evening.

Last year, FNPF declared a 6.25 per cent interest that resulted in $239 million being credited to members’ accounts.

FNPF’s Chief Operating Officer Jaoji Koroi said the rate declared is testament to the Board’s continued commitment to grow members’ funds.

“The FNPF Board has worked diligently to reshape and strengthen our investments and operational strategies given the changing investment environment, and in order to meet the returns and growth expectations from our members,” Mr Koroi said.

“Whilst the investment environment continues to be a challenge, we are beginning to see the positive result of taking a more active investment stance.

“In particular, we continue to pursue high-yielding investment to maximise returns on members’ funds, especially by increasing both offshore and growth investment.

“To this end we have invested in Emerging Asia Fund managed by the World Bank Group.

“We have built and redeveloped key properties such as the Fiji Marriott Resort Momi Bay and the MyFNPF Centre in Greig Street Suva.

“Works has commence at the Nadi Retail Centre.”

Mr Koroi said that inclusive of investment in bonds, loans and equities, the Fund’s Return on Investment (ROI) calculated from actuarial perspective for the Financial Year 2017 stood at 6.42 per cent.

He added that the Board considered returning to members something close to the net income earned on their funds and retaining some surplus to finance regulated solvency.

He confirmed that the rate has also been certified by the Fund’s Actuary, as required under international best practices and in compliance with FNPF Regulations.

“It is also important for members to understand that the 6.35 per cent interest credited depend entirely on the balance of their account, plus taking into considerations movements during the financial year 2017,” he clarified.

Since the implementation of the new interest system from  November 2014, interest is accrued on the opening balance and takes into account movements during the financial year.

“Inclusive of the interest declared this year is about $7 million due to contributions that have been posted late since November 2014.

“Most of these contributions have been received without proper details and have ended up in suspense account.

“The introduction of the new Employer Portal have taken away this problem and have allowed us to reduce the suspense and compensate these members accordingly.

“It is important that Employers pay the FNPF contributions on time as members whose contributions come in early directly benefit from the new interest system as opposed to those that get theirs paid late.”

Mr Koroi also urged members to take advantage of the new online services provided by the Fund to check their FNPF balances.

This would ensure contribution reach the member account on time and interest are accrued without delay.

“The new MyFNPF mobile app allows members to check their account transactions.

So, when you notice that your contributions have not been updated you can check with your Employers or even check with us,” he said.

“The MyFund SMS service allows members to also check the last five transactions in their accounts. Then there is the Member Portal which also gives you access to your account.

“All these services have been introduced to engage and empower our members to be better acquainted with their FNPF savings.”

The Fund is also working to distribute updated member statements through their Employers soon.

Source: Fiji National Provident Fund

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