Current FNPF Pension Rate being reviewed

The Fiji National Provident Fund has confirmed that the current FNPF Pension Rate is being reviewed as part of it's Reform Strategy.

FNPF Chief Executive, Aisake Taito has told Fijivillage News that FNPF provides one of the most generous pension schemes in the world and the reform will address the sustainability of the pension system by making the pension annuity factor sound.

Taito said the Fund has acquired the World Bank Pension Model known as the Pension Reform Option Toolkit which has been used to simulate pension reform options.

The current FNPF pension rate is 15 percent for a single pensioner and 11 percent for joint pensioners. In the instance of a single pensioner, this rate allows the member to access 15 percent of his balance annually.

Taito said currently, whether the pensioner outlives the total balance of his account, FNPF remains committed to paying the 15 percent rate for the rest of the member's life.

For example, a member's balance at retirement is 60 thousand dollars.

Based on the current rate, the member will receive 750 dollars per month for the rest of the member's life even though the pension balance would be used up within six and a half years.

Taito said this is the major benefit of being a pensioner with FNPF where the member has peace of mind of financial security for the rest of his life, especially now, at a time of financial uncertainty.

Story by: Vijay Narayan