Fund achieves positive turnaround

The Fiji National Provident Fund (FNPF) proudly announces a remarkable financial turnaround in its 2023 Annual Report, marking a positive net contribution of $100.3 million after facing two years of negative net contributions due to the impactive repercussions of the COVID-19 pandemic on the labor market.

Furthermore, the Fund continues to diversify its investment portfolio, resulting in assets exceeding $9.5 billion, demonstrating FNPF’s commitment to optimal performance; this is a result of strong financial and operational success, which contributed to a $521.7 million increase in member funds, reaching $7.5 billion.

Fund chief executive officer, Viliame Vodonaivalu, expressed his gratitude for the collective efforts of the entire FNPF team and the continued support of its valued members, employers and pensioners.

“This year has been a remarkable journey, and we are proud of what we have accomplished together. Our commitment to securing the financial future of our members remains unwavering, and we look forward to the opportunities and challenges that lie ahead.”

Other key financial highlights are as follows:

  • members’ voluntary and additional contributions increased to $74.6 million, demonstrating confidence in FNPF’s overall sectoral performance.
  • the Fund’s net income increased by 19.2% to $775.8 million.
  • the declaration of the 7% interest rate for the fiscal year, with a total of $457.6 million distributed to member accounts.
  • $441 million was paid out in withdrawal assistance to 52,375 members, aligning with the Fund’s hybrid strategy of meeting both retirement and pre-retirement needs.

FNPF’s commitment to operational excellence and member-centric initiatives is evident in the following achievements:

  • collaboration with the Government, the contribution rate has been reinstated to 18% and will be effective from January 1, 2024, restoring pre-pandemic rates for optimal retirement savings.
  • introduction of products such as the DrawDown Account, which provide members a flexible retirement planning option and secured- government guarantees for Retirement Income Fund (RIF) bond investments.
  • enhancement of its education assistance based on member suggestions, offering professional development courses.
  • amending the FNPF Act, to allow for international expansion of the Fund to open an office in Australia to facilitate superannuation services for Fijian migrant workers to build and access their retirement savings.
  • building on the Fund’s continued membership growth, the 2023 financial year recorded 23,889 new members while also supporting 13,026 exits through entitlement withdrawals.

“We are committed to the Fund’s vision of securing the financial well-being of its members and we anticipate continued growth and success in the years to come.” Mr Vodonaivalu adds.

The Fund’s 2023 Annual Report was tabled in parliament last week and will be presented to members during the Fund’s Annual Member Forum scheduled for early 2024.