- August 11, 2021
- Posted by: test editor1
- Categories: Media Articles, News & Media
Good afternoon to you all.
- Firstly, I would like to acknowledge God for the gift of life and good health that enables us to continue to serve our members, under trying times with COVID 19 in our midst.
- I, along with many other FNPF staff, have received our first dose of the vaccine and we look forward to getting our second dose in a few weeks’ time.
- It is important that we are all vaccinated as this would enable the opening of our borders and the resumption of economic activities.
- For our unemployed members, it would mean re-employment and the ability to provide for their families and save for their retirement.
Today, I will announce
- the interest rate for the year.
- the Special Death benefit cover
- And, an additional product that we will introduce to help members continue to build on their retirement savings.
- The end of the FNPF’s financial year is always an anticipated time for many of our members, mainly because, of the interest rate declared by the FNPF Board based on the financial performance during the year.
- The interest rate grows members savings.
- The Fund was not spared from the challenges that the local and global economies faced from early 2020.
- The coronavirus pandemic, both the first and especially the second wave, has had a crippling effect on businesses, and continues to affect individuals and families.
- While our core role is to grow and secure members’ funds for retirement, we are content that we partnered with Government to implement social security strategies that provided relief for thousands of our members during these challenging times.
- The Fund continues to forge ahead with our growth strategies, reaffirming our stable financial position, to provide positive returns for our members.
- It is therefore, my pleasure today to announce that the FNPF Board has approved a crediting interest rate of 5% for the financial year ending 30th June 2021.
- This rate was approved after the Fund Actuary determined that it will not place undue stress on the FNPF’s solvency requirements.
- This confirmation is crucial and is required under our law.
- Therefore – a total of $297 million will be credited to 389,986 member accounts this evening.
- What each member gains will depend entirely on their average balance during the year – but they must have a positive FNPF total balance.
- Matching the rate paid out in 2020, this percentage is still very competitive given the constricted economic environment.
- While investment opportunities are limited, we continue to strategise and ensure that we are always maximizing our returns.
- The Fund also continued to receive steady returns from Government bonds – a major contributor towards a positive performance for financial year 2021.
- The other main drivers of investment performance for the year were the banking sector investments in BSP and HFC, as well as gains from the sale of Energy Fiji Limited shares and fair value gain for Vodafone Fiji Limited.
- Our investments in tourism have been impacted but it makes up a smaller portion of our overall investment portfolio.
- The 5% interest rate – re-asserts that the FNPF remains the best choice for your long- term investments.
- The Fund has now paid over $1.5 billion in interest to its members in the last 5 years and over $2.4 billion over the last 10 years.
- This is a reflection of the Fund’s prudent investment decisions, which have resulted in the growth of the Fund’s portfolio to where it is today.
- So from tomorrow, members can see how much their balance has grown, by downloading the MyFNPF App on their mobiles through the Google Play Store or the Apple App Store, as well as the other FNPF digital services (Member Portal, myFUND SMS).
Special Death Benefit Cover
- Furthermore, the Board has maintained the Special Death Benefit (SDB) premium of $35 for a SDB death cover of a maximum of $8,500 for the new financial year.
- This amount is added to a member’s total balance in the unfortunate event that he/she passes away during the 2022 financial year.
- The deduction of $35 will be done tomorrow, 1 July 2021, from all active FNPF member accounts.
- We continue to encourage our members to save whenever it’s possible to do so.
- While we are mindful of the tough economic times, we should always be prudent with our savings and consider opportunities to increase it.
- I would like to announce, that our compulsory members who may not be able to commit to a fixed amount every pay day as Additional contributions, can now add on to their FNPF savings as best as they can manage.
- These members can now top up their savings either:
- Over the counter
- Direct deposit with their preferred bank
- Or online banking
- This arrangement gives members the opportunity to contribute more to their retirement savings, at any time, and no longer restricts them to payroll deductions only.
- This facility empowers our members to take advantage of the compounding interest we offer – as the more you have in your account, the more interest you will earn.
- The Fund is a retirement savings scheme and we will continue to encourage our members to build up their savings for meaningful future.
Get Us online
- To conclude, I would like to remind our members once again, to access our services online.
- As, we cannot stress enough the need for our members to exercise caution and refrain from moving around unnecessarily.
- Our online platforms are which also includes our website live chat facility on the FNPF website and our social media pages.
- Please use these platforms to engage with us and minimize movement as much as possible.
- I extend our appreciation to – all employers, our members, our pensioners and the Government for your continued support. We also thank our vendors, suppliers, contractors, tenants and other stakeholders.
- The next financial year will present itself with its own set of challenges but nothing is impossible if we effectively carry out our respective roles to ensure our members funds are protected for their future.
- Be safe and take care. May God bless you all. May God bless Fiji.