- June 28, 2019
- Posted by: fnpf_editor2
- Categories: Media Articles, News & Media
Fiji National Provident Fund (FNPF) members will wake up on Monday 1 July 2019 to new balances, after the FNPF declared earlier today an annual interest rate of 6.75% for the financial year ending 30 June, 2019.
This means that a total of $346 million will be credited to over 379,000 members’ (with positive balances) accounts on June 30th, boosting their account balance.
Last year, the FNPF declared a 6.35% interest totaling a payout of $297 million.
FNPF Chief Executive Officer Jaoji Koroi said that the interest declared was a testament of the positive flow-on effect of the FNPF Reforms and commitment by the Board to continue to grow members’ funds. The declared interest rates have been on a stable trajectory for the last 10 years.
Mr Koroi also clarified that the increase in the rate this year is attributed to one-off revaluation gains with the rates expected to normalize from next year.
“The increase in rate this year reflects the one-off revaluation gains recorded in the last financial year and some are also expected this year. Bulk of these gains came from our subsidiaries valuations after the adoption of IFRS 9. So we expect that the next year’s rate to moderate back to around ROI level”, Mr Koroi said.
This interest is the highest ever amount credited and is almost double what we credited 5 years ago. The Fund has paid a total of $1.37 billion in interest to members in the last five years reflecting the Fund’s strong financial position.
“Despite the competitive investment climate, the Fund continues to seek investment opportunities that will maximize the returns to members’ savings.”
“The amount that each member gains will depend entirely on their average balance during the year. Quite a few of our members have understood this and have repaid or are in the process of repaying the funds they have withdrawn through the years so that it boosts their total savings, earning them more interest in the process.”
“There are other members who have increased their monthly deposits through the additional contributions, to enable them to earn more interest.”
“These members have grasped the importance of saving with FNPF and have capitalized on the facilities or products available, as well as the tax exemption to boost their savings.”
Mr Koroi said the FNPF Board and Management will continue to implement strategies and do what is right to protect members’ hard-earned savings, now and in the future.
“We will continue to strive for business improvements to better serve our members through enhancements in our IT systems and processes”, Mr Koroi
Mr. Koroi urged members to utilize the Fund’s digital services to track their savings, to enable them to make well-informed decisions.
He urged members to register for the MyFNPF App, as well as the other FNPF digital services (Member Portal, myFUND SMS) to be able to check the change in their retirement savings balance, following the interest crediting period.
He adds that these e-services also allows members to track their contribution payments and ensure it is paid on time, especially since interest is calculated daily.
Members are encouraged to register for the e-services in order to receive their updated statements.
Mr Koroi also confirmed that the Board has also retained the Special Death Benefit (SDB) of $8,500 for FY2020 at a premium of $35, to be deducted from members’ accounts on 1 July, 2019.
Mr Koroi acknowledged the support rendered by members, pensioners, employers, stakeholders and government for the last 12 months. He also conveyed his appreciation to the staff of the Fund for their commitment and hard work.