Today (Monday), FJD$179 million will be distributed and credited to 300,000 accounts of members of the Fiji National Provident Fund.
This represents 5.75 per cent interest rate for the institution’s financial year ending June 30, 2014. FNPF chief executive Aisake Taito said this has been delivered through positive outcomes of the Pension Reforms implemented two years ago.
At a press conference at Downtown Boulevard last week, Mr Taito said the rate had been reviewed by an Actuary as required under international best practices.
“This rate is much higher than what is currently offered by other local financial institutions,” Mr Taito said.
“The rate of 5.75 per cent means that around $179 million will be distributed to our members and will be credited to their FNPF accounts on Monday night.”
The past year saw the institution declaring 5.5 per cent interest representing $156 million payout.
The interest declared was a key testimony of the success of the FNPF Reforms, he stressed.
“Regardless of what has been highlighted in the media and other forums, let me assure you all that the 5.75 per cent interest rate illustrates that the FNPF Reform has achieved its purpose and proves that FNPF is on the right track.”
Special Death Benefit
The board, after its meeting also retained the Special Death Benefit (SDB) for the financial year 2012 of, $8,500.
This is at a premium of $35, to be deducted from members’ accounts on July 1 (tomorrow).
Mr Taito said: “The SDB is currently being reviewed to ensure that we have a competitive product that will benefit all members.
FNPF continues to be on track with the implementation of the World Bank and the International Monetary Fund’s Financial Sector Assessment Programme recommendations.
Mr Taito added it was keen to seek technical assistance for the World Bank and IMF to a conduct a post-evaluation of the Pension Reform in the next year.
“We will continue to strive for improvements in our business to better serve our members through enhancements in our IT systems and processes,” he said.
“Our investment rehabilitation is progressing well and the board will continue to protect members’ funds through prudent investment management.”
Suva (Fiji Sun)