Pensions and annuities are provided from the Retirement Income Fund (RIF), a separate fund within the FNPF, established to provide life pensions and term annuities.
The amount set aside by a member for his pension is paid into the RIF, and the pension is paid out of the RIF. The RIF is supported by the investment earnings on its assets, less expenses attributable to its management.
A solvency reserve is held within the RIF to ensure that the Fund is able to meet pension payments in all reasonably foreseeable circumstances. The ability of RIF to meet pension payments is monitored by the Reserve Bank of Fiji (RBF). RBF sets standards and obtains regular reports on the RIF from the FNPF. These reports include a Financial Condition Report signed off by the FNPF actuary.