FNPF clarifies on zero balances

FNPF would like to clarify that its decision to address inactive accounts concerns only those with zero balance or with no funds in their FNPF account.

Acting Chief Executive Officer Viliame Vodonaivalu confirmed that the Fund had received an influx of enquiries from members who were concerned about the FNPF’s recent move to explore policy intervention in addressing the issue of zero balance.

“It seems a misunderstanding exists that this will apply to all members. The process of addressing these accounts with zero balances will not affect any member that has funds”

“We would like to reassure our members that there is no reason to panic. FNPF will exhaust all avenues to contact these members, before any action is taken to either terminate or deactivate these accounts with zero balance”, Mr Vodonaivalu says.

Over 59,000 members have zero balance and this is the total sum inherited over the years since the Fund began operations in 1966.

Seventy-six percent of these accounts are due to inconsistent contributions, or transaction adjustments inclusive of Special Death Benefit deductions while twenty-four percent are members that are registered and have not contributed at all (null accounts).

The Fund is also encouraging members who have balances, but have had no transactions, to continue making payments to their FNPF account. “As long as you have a positive FNPF balance, it will keep earning interest annually.

So the more funds you have, the more compound interest you will earn and the faster you will grow your savings for retirement”, Mr Vodonaivalu adds.

FNPF encourages members to download the myFNPF mobile app, sign up for the member online portal or myFund (*567#) to keep updated about their FNPF account, balances or transactions.