The Fiji National Provident Fund (FNPF) reported significant financial growth for the financial year ending 30 June 2024, with total assets increasing by 11.6% to $10.6 billion, up from $9.5 billion in the previous year.
The Return on Investment (ROI) increased to 8.5%, enabling a crediting rate of 8% and $572.4 million paid in interest to members in July.
Commenting on the results, FNPF CEO Viliame Vodonaivalu said, “This growth underscores the Fund’s commitment to maximising performance and securing the financial future of our members.
“As a result, member funds increased by $900 million, reflecting a 12.5% year-on-year increase.
“The Fund’s financial performance is a reflection of the diversification of our investment portfolio, balancing growth and defensive asset allocations. Despite the challenges posed by rising costs of living and limited employment opportunities, we’ve been able to capitalise on key opportunities to achieve these results,” he added.
“We continually reinvent ourselves to meet the evolving needs of our members. This includes revising policies, improving processes, and introducing solutions to help members accumulate sufficient savings for retirement,” Vodonaivalu said.
Financial Performance:
Member Funds: Increased by $900 million to $8.1 billion, a 12.5% growth.
Net Contributions: Total contributions reached $779.8 million, exceeding withdrawals of $456.6 million.
Additional Contributions: Grew by 106% to $81 million.
Voluntary Contributions: Increase by 83% to $27.4 million.
Highlights:
- Membership eligibility extended to infants from September 2024.
- Introduction of a Gift Card initiative to promote retirement savings.
- Expansion of education-related withdrawal benefits to cover laptops and professional development courses.
- Agreements with countries including Australia and New Zealand to allow overseas Fijians to contribute to FNPF.
- The Fund recorded 28,703 new members and 13,575 exits during the year.
Policy Updates:
- Contribution rate restored to 18% in January 2024, reflecting government support for retirement savings.
- Implementation of a revised penalty system to enhance contribution compliance.
The FNPF’s 2024 Annual Report was tabled in Parliament on December 6 and will be presented to members during the Annual Member Forum in early 2025.
