Good morning media colleagues,
Despite the chilly start this morning, I’m glad that you are all able to attend this important media conference and for that I am grateful.
In fact, there are so many things that we should be thankful for. First and foremost I am thankful to our Heavenly Father for the gift of life and his blessings to all of us.
For many of our members, the end of the FNPF’s fiscal year is eagerly anticipated.
As it is when the FNPF Board announces the interest based on the year’s financial performance.
And despite the erratic external changes happening throughout the world, the Fund has continued to go forward with our growth objectives, reiterating our solid financial position, to provide interest to our members.
Interest rate
For this purpose, it gives me great pleasure to report that the FNPF Board has approved a crediting interest rate of 6% for the fiscal year ending June 30, 2022.
The Fund Actuary judged that this rate won’t put an excessive strain on the FNPF’s solvency criteria. As per FNPF Act, this Actuary validation is a mandatory requirement.
As a result of this interest payment, a total of $371 million will be credited on the evening of June 30, 2022, into the FNPF accounts of 392,175 members.
The interest amount which each member will receives depend solely on their average daily balance over the year.
The growth in interest is related to the higher returns achieved from investments that have been strategically managed by the FNPF.
Predominate component of investment return is the Government Bond –Income and equity investments return.
On equity investment return can be attributed to infrastructure investments and the recovery of the Tourism industry since borders opened in December 2021.
The Fund is able to pay a higher rate this year than it did in 2021, when it paid 5%, because of the diversified investment portfolio.
The 6% interest rate – serves as a reassuring signal to our members that the Fund and its future are secure.
The rate confirms that the FNPF continues to be your best option for longterm investments.
After this interest payment, the Fund will have distributed to its members interest payments totaling more than $1.6 billion over the previous five years.
This is a reflection of the Fund’s investment choices, which have allowed the portfolio to grow to its current size.
We will continue to explore more investment possibilities to maximize member funds’ growth and get them ready for a more financially secure retirement.
So from 1 July 2022, 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,o as well as the other FNPF digital services (Member Portal, myFUND,SMS).
Special Death Benefit Cover
The Special Death Benefit (SDB) premium of $35 for an SDB death cover of up to $8,500 has also been maintained by the Board for the upcoming fiscal year.
In the tragic event of a members demise within the 2023 financial year, which runs from July 1, 2022, to June 30, 2023, this sum is added to the member’s total balance.
All active FNPF member accounts will have a $35 debit made on July 1, 2022 for this Special Death Benefit premium.
Contribution Payment Early Closure
The Fund issued public advisories earlier this week reminding members and employers to make any voluntary, mandatory, or supplementary contributions by 1 p.m. on June 30, 2022 so that the Fund will be able to complete the Interest Crediting procedure.
As a result, on June 30, 2022, the Fund will take the following actions:
- At 1pm, all of our cashier services will be closed.
- From 2 p.m., all of our customer service centers will close.
We really hope that all of our members and employers would take heed of our plea.
Conclusion
In closing, I want to reassure both our employers and members that the Fund is in a strong financial position.
The Fund is in this for the long haul, and our track record proves it.
Some FNPF members continue to choose to listen or seek advice from people who are not FNPF officials.
Our key focus is being member centric. For that, we have made our numerous communication channels accessible to members so they may use them if they require any clarification.
On behalf of the FNPF Board, Management and staff, I wish to express our gratitude to the Government, all employers, our members, pensioners for their ongoing support.
We also appreciate all of our contractors, suppliers, tenants, and other parties that I haven’t specifically addressed.
We are thrilled about what the new financial year has to offer. As we work to become more adaptable, robust, and strong in this shifting operating environment.
FNPF view that investments in infrastructure with be a catalyst for the growth, and we will take advantage of this.
We hope and pray that it will be a year of success to us all.
Again I thank you for being here today. Vinaka vakalevu