The Fiji National Provident Fund (FNPF) announced significant financial growth for the fiscal year ending June 30, 2024, with total assets rising to $10.6 billion, up from $9.5 billion the previous year. This impressive increase culminated in a net return on investment of 8.5 percent, prompting the declaration of an 8 percent crediting rate and a substantial payout of $572.4 million in interest to its members in July.
FNPF’s Chief Executive, Viliame Vodonaivalu, highlighted that a strategic approach to investments, including new partnerships and expanded stakes in existing ventures, contributed to an overall asset growth of 11.6 percent. This growth reinforces the Fund’s dedication to optimizing financial performance and safeguarding the future of its members.
Notably, member funds witnessed a significant rise of $900 million, reaching a total of $8.1 billion, which represents a 12.5 percent increase year-on-year. This growth was partially attributed to an improvement in contribution collections, even amid challenges such as rising living costs and limited job opportunities. Vodonaivalu emphasized that despite these difficulties, the Fund leveraged key opportunities that contributed to its remarkable results, enhancing members’ financial prospects.
Key highlights from the financial year include the approval of the 8 percent interest rate, which has led to $2.3 billion paid in interest to members over the past six years. The government’s collaboration resulted in reinstating the contribution rate to 18 percent in January 2024, reinforcing support for members’ retirement savings. Total contributions of $779.8 million eclipsed withdrawals of $456.6 million, indicating a net contribution of $323.2 million and a 106 percent increase in additional contributions.
Further, to promote early savings accumulation, FNPF has extended membership to infants from birth and introduced a Gift Card initiative aimed at enhancing retirement savings. Other initiatives include the approval of an improved penalty system for contribution collections and an expansion of education withdrawal benefits, now inclusive of laptop purchases and professional development courses. Agreements with international jurisdictions further enable Fijians abroad to continue contributing to their retirement savings.
In a testament to its growth, the Fund recorded 28,703 new members in financial year 2024, while also managing 13,575 exits through entitlement withdrawals. The Fund’s Annual Report for 2024 was submitted to parliament on December 6 and is set to be presented to members at the Annual Member Forum early next year.
This growth reflects a steadfast commitment of the FNPF to not only protect but also enhance the financial well-being of its members, paving the way for a more secure future while addressing the evolving needs of its community.
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