FNPF targeting employers for consultation

The Fiji National Provident Fund is focusing on employers for the next two weeks.

Spokesperson Wainikiti Bogidrau said that their public consultation has been completed and they are now focusing on getting employers to understand the importance of bringing about changes to FNPF.

According to Bogidrau, they need to get employers to understand the importance of the changes and have so far had about three meetings with government departments such as staff from the immigrations department.

Some of the major proposed changes include the annual pension rate to be reduced from 15 percent to around 9 percent and the proposal to get members to go on compulsory pension and stop lump sum withdrawals when FNPF members turn 55.

FNPF's consultant Mercer's Richard Codron had earlier told Fijivillage News they have calculated the future life expectancy of men in Fiji at about 74 and women at 77, and based on this the pension rate has to be reduced to ensure the sustainability of FNPF.

Meanwhile, Fiji Islands Council of Trade Unions General Secretary, Attar Singh said that there is no need to rush into the reforms to reduce the pension rate.

Singh said FNPF should look at increasing the employer and employee FNPF contributions in 2015 by 1 percent each, and again in 2020.

He said this would mean that the pension rate will not have to be reduced.


Story by: Paradise Tudrau