5% interest to be credited into FNPF members’ accounts tonight

5% interest to be credited into FNPF members’ accounts tonight

By Semi Turaga
Tuesday 30/06/2020
FNPF Chief Executive Officer, Jaoji Koroi.

Good news for Fiji National Provident Fund members as an interest rate of 5% worth a total of $286.2 million will be credited to over 388,000 FNPF members’ accounts at midnight tonight.

FNPF says this is the interest rate for the financial year ending 30th June 2020 and the amount which each FNPF member gains will depend entirely on their average balance during the year.

Members must have a positive balance to receive this interest rate.

CEO Jaoji Koroi says the FNPF has paid over $1.43 billion in interest to members’ accounts over the last 5 years.

Koroi says this crediting rate has been determined after the FNPF Actuary confirmed that the amount will not place undue stress on the solvency requirements of the FNPF.

He says this is a very important safeguard for the Fund.

Koroi says last year, when they declared the interest, they had clearly advised members last year, that the interest declared was reflective of the one-off revaluation gains recorded in the accounts last financial year, and the rate would normalise this year.

He says however, with the added economic downturn impacted by COVID-19, it has resulted in the declaration of 5 percent.

Koroi says whilst this rate is lower than they have initially anticipated, it is still very competitive given the current economic and investment environment.


Koroi has reassured members that the Fund remains in a strong financial position.

He says the full economic impact of COVID-19 is still working through the economy and will be more prominent in the coming year.

Koroi says accordingly, FNPF investments in the tourism sector will continue to be affected in 2021.

He says they will therefore rely on their investments in the balance of their portfolio including the 42% investments in safer Government bonds to support the returns next year.

Koroi says this is the benefit of diversification.

He adds the Fund’s investment team is closely monitoring the economic climate of the country and the global community and they will continue to seek opportunities that would optimise returns.

Koroi says all industries, including the superannuation industry are facing immense challenges with the key challenge being the need to strike a balance between helping members during this difficult period without losing sight of the core objective, which is to ensure that the members will have a meaningful income when they reach retirement.

Stay tuned for the latest news on our radio stations

CFL radio frequencies
National Budget 2020-2021
Full coverage of 2020-2021 National Budget including budget consultation from different sectors. The National Budget will be announced on July ...
23 hours ago

SODELPA spectacle
With SODELPA going through changes and opposition within the party, we give you all the stories that covered these ...
13 days ago

USP Saga
Full coverage of the USP saga including coverage of protests, investigations, reports and ...
13 days ago
Nasilasila has completed the necessary rehabilitation treatment programs to be eligible for activities like rugby – Fiji Corrections
The Fiji Corrections Service says the institution knows what's best for inmate, Amenoni Nasilasila, as they have professional Psychologists and Counse...
14 hours ago
Fiji Airways tells FRU they won't be able to provide sponsorship until things normalize
Fiji Rugby Union Chief Executive Officer John O'Connor has confirmed they have been told by Fiji Airways that they won't be able to sponsor the ...
10 hours ago

Ministry of iTaukei Affairs helping empower women in the fisheries sector
The Ministry of iTaukei Affairs is helping strengthen the empowerment of women through the signing of a memorandum of understanding to support the ...
14 hours ago

Man claims of police inaction after a break-in at his house in Davuilevu Housing
A resident of Lot 4 Laqio Road in Waila 3B, Davuilevu Housing is claiming of police inaction following the lodging of a break-in report at Nakasi ...
14 hours ago

WAF purchases 22 generators to ensure they continue to supply water during a power outage
The Water Authority of Fiji is waiting for the arrival of 22 generators from overseas that will be installed at certain treatment plants and pumping ...
14 hours ago

Widespread condemnation after those speaking out about Nasilasila are attacked with racist remarks and called to be raped
There is widespread condemnation on social media and from Fiji women’s rights groups and activists against people that are hurling racist remarks ...
14 hours ago