Prominent local accountant Jenny Seeto has voiced concerns about fairness in the Government’s Pension Restoration Fund, established in last year’s budget to reinstate pensions for members affected by the 2011 Fiji National Provident Fund (FNPF) reforms. Seeto spoke as an FNPF member during the FNPF Law Review consultations held at the Suva Civic Centre on Tuesday night.
The Coalition Government introduced the pension restoration fund in the FY2024-2025 budget to reinstate pension payments cut by the 2011 reforms, which reduced pension rates for some FNPF members. Under the initiative, the government will provide four million dollars a year to affected pensioners, with the full measure projected to cost about 57 million dollars over the next two decades.
While Seeto said she sympathises with pensioners, she questioned whether the four million dollars a year could be better directed elsewhere. “As a taxpayer I would rather the four million dollars a year be used towards the Colonial War Memorial Hospital, for example,” she argued, adding that if FNPF still has the capacity to pay pensions, it could gradually restore them by reducing the eight percent annual interest credited to members and allowing the fund itself to restore pensions over time.
Seeto acknowledged the Government’s initiative as commendable but said it isn’t the right direction and urged clearer communication from both sides to settle the issue. “It’s never been explained why the law can’t change, and I don’t know whether it is a decree,” she said. “We need education on why the law can’t change, and sustainability considerations after 14 years.”
The FNPF board has maintained that the fund was prevented from continuing its previous pension payments after the 2011 reforms. Attar Singh, a board member and workers’ union representative, said the issue is constrained by the Constitution: “Any decree amended is amended moving forward, not backward.” He said the Government’s decision to continue pension payments is a government matter, and that the budget has no direct bearing on the Fund. “The Fund’s position was that it could not continue the previous pension,” he stated, noting that members chose their options when reforms were implemented and that current law prevents retroactive changes.
In his Budget speech last year, Deputy Prime Minister and Finance Minister Prof Biman Prasad said the full cost of the restoration would be around 57 million dollars over the next two decades. The ongoing discussions are part of a broader national debate about how to address historical grievances tied to the 2012-2013 period and the governance of the FNPF.
Context from broader coverage indicates the debate is far from settled, with critics arguing that any partial restoration omits groups who chose lump-sum options and some who believe backpay or full restoration is warranted. Proposals have ranged from restoring the pre-2012 pension levels to ensuring arrears and estates are addressed, with stakeholders emphasising fiduciary responsibility and fairness.
Overall, the consultations signal continued engagement between the Government and the FNPF with the aim of forging a clearer, more sustainable path forward for pensioners and the fund alike, while acknowledging the constitutional and legal constraints that shape any potential changes.
Summary for readers: A Fiji Government plan to restore pensions for those affected by the 2011 FNPF reforms involves a four-million-dollar annual allocation, projected to cost about 57 million dollars over 20 years. While some see it as a positive step, critics stress the need for greater clarity on legal limits and fairness for all affected pensioners. The discussion continues as both the Government and the FNPF seek a workable resolution.
Editor’s notes and reader value add:
– Watch for any proposed amendments to the 2011 Transition Act or related decrees that could enable broader restoration or backpay.
– Follow updates on whether FNPF’s governance reforms include enhanced fiduciary duties and greater transparency to pensioners.
– Look for a detailed breakdown of who would be eligible under the restoration and how estates or deceased beneficiaries would be treated.
– Possible next steps include parliamentary discussions or independent reviews to address outstanding grievances and rebuild trust in the pension system.
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