- March 19, 2021
- Posted by: fnpf_editor2
- Categories: Media Articles, News & Media
The Fiji National Provident Fund Board has approved the removal of the limit placed on payments for voluntary members and compulsory members opting for additional contributions.
Fund Acting Chief Executive Officer Viliame Vodonaivalu announced that effective today, all limits previously placed on the amount that voluntary and compulsory members could pay, are no longer applicable.
“The FNPF Board has decided to provide members with these two opportunities to add-value to their savings.”
“The current cap or limit for voluntary contributions is $200,000 per year. The removal of this limit means that voluntary members can now pay any amount as and when they wish to, without restrictions.”
“Likewise, removing restrictions for additional contributions will allow members and/or employers to pay more than 30% of the member’s wages. While the mandated contribution rate is 10% (5% each from members and their employers), members and/or employers could only pay an additional 20%.”
The removal of the 30% cap means that members can pay more in additional contributions provided their employers ensure they comply with the Employee Regulations Act, which considers employees’ financial commitments.
Employers, who continue to pay additional contributions for their employees, can claim 150% tax reduction.
“FNPF continues to be a great investment platform for our members, providing them with excellent opportunities to grow their retirement savings,” said Mr. Vodonaivalu.
“Not only do we provide one of the best interest rates on savings, members funds kept with the Fund are tax-free. And when we pool resources, and invest these, the returns it provides our members is tremendous given the power of compounding interest.”
FNPF has grown members’ funds by paying $1.43 billion over the last five years in interest alone averaging 6.14% from 2016 to 2020.
“Whilst prevailing conditions have affected our investment in the tourism sector, we can assure members that we will continue to work in their best interest to grow their savings.”
To date, the Fund has more than 22,000 registered voluntary members, however, only 5,806 actively contributed.
A total of 12,050 employees are receiving additional contribution from their employer and 5,708 members are currently paying employee additional contributions