New FNPF Pension Scheme to commence from this Thursday

The new Fiji National Provident Fund Pension Scheme will commence from this Thursday and there will be no changes to the plan earlier announced.

Pensioners who have been on the 15 or 25 percent yearly pension rate from their total FNPF funds, they will have to go for options where the annual pension rate would be about 9 percent.

FNPF has clearly stated that the Fund needs to implement the pension reforms to ensure that it is sustainable in the future.

The International Monetary Fund’s latest report also highlighted that the FNPF would be unsustainable by 2050 if the pension reforms are not implemented.

Meanwhile, FNPF said it has validated about 8,000 of its 11,000 pensioners as at last Friday.

The Fund said majority of those validated have opted for the Life Pension and Term Annuity Products.

FNPF’s chief executive Aisake Taito said about 60 percent of those validated have indicated their choice to purchase the pension products.

Taito stressed that pensioners have to go through the validation process by this Wednesday.

He said those who have not validated by the stated timeline will not be able to transit into the new pension scheme and they will not be entitled to a pension option nor receive any pension payments from next month.

It is also stated that for current pensioners, validation is mandatory even if people want lump sum payments.


Story by: Vijay Narayan