70% of retirement funds are kept in members’ FNPF preserved accounts – PM

Prime Minister, Voreqe Bainimarama says while they have used the Fiji National Provident Fund as their means for distribution of COVID-19 unemployment assistance, that assistance is only drawn from the members’ general accounts which contains only 30% of the funds.

While contributing during the debate on the Review of FNPF’s 2018 Annual Report, Bainimarama says the vast majority of retirement funds are kept in the preserved account and even if general accounts are exhausted by those accessing unemployment assistance, government will step in to top up those accounts.

He says an area of concern is that both skilled and unskilled workers in the informal sector are not covered by any retirement scheme and he agrees that FNPF should work with government ministries and the private sector to put together suitable and simplified products to attract skilled and unskilled workers.

SODELPA MP, Niko Nawaikula says it does not make any difference that assistance for COVID-19 is withdrawn from the general account and not the preserved account as at the end of the day, the members are withdrawing their own money.

Nawaikula says if the government is committed then it should give people its own money and not ask the members to withdraw money from their accounts.

He adds that the FNPF board should distribute its investments as it is allowing government to take 35% of its equity.

Nawaikula says in 2018, $638 million was paid by the contributors to FNPF and in the same year, government took out $588 million from the Fund.

He says it is bad investment for FNPF.

Minister for Fisheries, Semi Koroilavesau says Nawaikula’s statements do not make any sense.

The motion has been passed in parliament.