Nearly 90 percent of members of the Fiji National Provident Fund will have their account balances topped up by next Friday, 1 July.
The increase comes on the back of today’s announcement by the Fund, having approved a crediting interest rate of 6 percent totaling $371 million for the financial year ending Thursday 30 June 2022.
Those eligible equating to 392,175 members are account holders who have positive account balances whether working or voluntary. As for the amount each member gets, Fund Chief Executive Viliame Vodonaivalu says it will depend on their average daily balance over the year.
Members’ allocation will be credited to their accounts on the evening of 30 June.
In the last financial year, the Fund paid a rate of 5% totaling $297 million to 389,986 members. Vodonaivalu attributed the growth in interest this year to the higher returns achieved from the Fund’s investments.
“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. This is a reflection of the Fund’s investment choices, which have allowed the portfolio to grow to its current size.”
The 6% interest rate, Vodonaivalu says serves as a reassuring signal to the members that the Fund and its future are secure.
“The rate confirms that the FNPF continues to be your best option for long-term investments.”
The latest payment brings to $1.6 billion the amount of interest credited to members’ accounts over the last five years.
Special Death Benefit Cover
The Fund has maintained the Special Death Benefit (SDB) premium of $35 for death cover of up to $8,500 for the upcoming fiscal year.
This means that in the event of the death of a member within the 2023 financial year, which runs from 1 July 2022 to 30 June 2023, $8,500 is added to the
member’s total balance.
The SDB premium will be deducted from all active FNPF member accounts on 1 July. As of the end of the previous financial year on 30 June 2021, FNPF’s total active members stood at 446,658.
In the current financial year, the Fund signed on around 19,500 new members.
In closing, Vodonaivalu reminded members about the mandate of the Fund as a superannuation entity, advising them that members and employers were welcome to make additional contributions, and save up for their retirement.
This year, the Fund is giving members until 1 pm next Thursday to make those contributions if they want to top up their balances prior to the distribution of the 6% credit interest.