The Fiji National Provident Fund (FNPF) reported significant growth in assets at the close of its financial year on June 30, 2024. The fund’s assets rose to $10.6 billion from $9.5 billion the previous year, marking an impressive increase. This growth led to a net return on investment of 8.5 percent, allowing FNPF to declare a crediting rate of 8 percent, resulting in $572.4 million in interest being paid to members in July.
FNPF Chief Executive Viliame Vodonaivalu attributed this achievement to strategic investments, new partnerships, and the enhancement of existing stakes, demonstrating the Fund’s commitment to making sound financial decisions to secure its members’ futures. As a result, member funds surged by $900 million, reaching a total of $8.1 billion, which reflects a 12.5 percent increase compared to the same time last year. This growth was partly fueled by higher contribution collections.
Despite facing challenges such as the rising cost of living and limited job opportunities, Vodonaivalu expressed optimism, noting that the Fund has effectively capitalized on key opportunities to meet its objectives. He highlighted the year as a time of consistency and growth.
In addition to the healthy financial performance, highlights from the year include the commitment to a sustainable interest rate of 8 percent, with $2.3 billion paid in interest to members over the past six years. The contribution rate was reinstated to 18 percent in January 2024, indicating the Fund’s support for enhancing members’ retirement savings. Furthermore, the total contributions for the year reached $779.8 million, outpacing withdrawals of $456.6 million, demonstrating a return to pre-pandemic trends.
Vodonaivalu noted several initiatives aimed at improving members’ benefits and operational efficiencies. These include extending membership to infants to encourage early savings, introducing a Gift Card program for retirement savings, streamlining penalty systems to better facilitate contribution collections, and expanding withdrawal benefits to support purchases of laptops and professional development courses. The Fund is also pursuing agreements with countries like Australia and New Zealand to allow Fijians living abroad to maintain their retirement contributions.
The FNPF welcomed 28,703 new members during the financial year while supporting 13,575 exits through entitlement withdrawals. Looking ahead, the Fund’s annual report was tabled in parliament on December 6 and will be discussed at the Annual Member Forum scheduled for early 2025.
Overall, the positive trajectory of the FNPF emphasizes the potential for sustainable financial health and retirement preparation for its members, showcasing a resilient approach despite external challenges.
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