FNPF makes net surplus of $242.6 million

As the Fiji National Provident Fund gets ready to make the formal announcement of changes to the pension scheme next month, it was announced today that the Fund has achieved a net operating surplus of $242.6 million for the financial year ending 30th June, 2011.

FNPF Chief Executive Officer, Aisake Taito saids this is an increase of 16% from $209.5 million in 2010.

FNPF’s total assets increased to $3.8 billion from $3.5 billion last year.

Taito said FNPF contributions grew by 3.8% to a record of $303.5 million reflecting improved compliance and enforcement however this was offset by total withdrawals of $309.5 million which led to a negative net contribution of $6 million.

The members’ balance grew by $100 million to $3 billion while FNPF’s investment income grew steadily from $221.7 million in 2010 to $240.4 million.

The Fund has also revealed the investment rehabilitation resulted in asset write-back of $30.4 million, and FNPF also increased its offshore investments to $114.2 million.

Active FNPF members continue to grow and the number now stands at 302,729 members which is a 7.3% increase from last year.

The total number of employers have also gone up to 7, 508.

Unpaid contributions decreased from $9 million last year to $8.2 million at the end of the 2011 financial year.

According to its 2011 Annual Report, 7,686 applications were approved for lump sum withdrawals totaling $120.7 million for people who turned 55.

This is a 39% increase in lump sum withdrawals compared to last year and the fund attributes it to the pension reforms.

636 members opted for pension when they turned 55 during the 2011 financial year.

Meanwhile FNPF Chief Executive Officer, Aisake Taito stressed that the current pension rate of 25% or 15% will be reduced.

When questioned on whether there will be a reduction in the annual pension rate to about 9% by Fijivillage, Taito said they have already stated that this is not negotiable and pension rates will be reduced.

He said this is in line with recommendations that have been received in the last 30 years from the World Bank, ILO, Blaxland and other consultants.


Story by: Vijay Narayan