Opposition MP Premila Kumar has raised concerns about whether the Fiji National Provident Fund is still fit for purpose as a national retirement institution for ordinary Fijians.
While contributing to the review of the 2025 Fiji National Provident Fund Annual Report, Kumar says despite the FNPF’s strong financial position, 72 percent of members have less than $20,000 in their accounts, while nearly 45 percent have balances below $5,000.
She says even more concerning is that thousands of members over the age of 55, who should be preparing for retirement, have less than $5,000 in their FNPF accounts, with some recording zero or negative balances.
Insert: Kumar on FNPF, 25th May 26
Government MP Professor Biman Prasad acknowledged that Kumar had raised valid concerns, but reminded Parliament that FNPF’s performance today was the result of reforms undertaken in 2011.
Professor Prasad says a unilateral decision was made in 2011 to reduce the pension rate, but the manner in which it was implemented sent a negative signal to members.
He says many members chose lump sum withdrawals instead of pensions because of the sudden reduction from 15 percent to a lower rate.
Professor Prasad says the previous government and the FNPF management had intended to reduce the pension rate even further.
He adds that when the current government came into office, it opposed any further reduction and committed to maintaining government borrowing levels to allow the FNPF to sustain the higher pension rate.
