The Fiji National Provident Fund (FNPF) Pensioners Committee has voiced strong criticism over the Cabinet’s recent decision not to reinstate pensions backdated to 2012. The Committee deems this ruling as unjust and unacceptable, asserting that it fails to recognize the plight of the affected pensioners.
In a formal response issued on February 27, 2026, Committee Chair Ross McDonald articulated the group’s rejection of the position communicated by Finance Minister Esrom Immanuel through the media. With a representation of around 1,400 pensioners impacted by the 2012 changes, the Committee argues that the modifications unlawfully reduced life pensions and breached contracts signed with the Fund.
Highlighting the urgency of the situation, the Committee is seeking an immediate meeting with both the Finance Minister and Prime Minister Sitiveni Rabuka to address these concerns. Many members of the group are elderly and face declining health, making the need for dialogue particularly pressing.
The Committee disputes official claims suggesting that restoring full pensions would jeopardize FNPF’s financial stability. They reference a Pension Buffer Fund established in 1975, questioning why this reserve cannot be utilized to cover pension liabilities.
Earlier, the Cabinet had firmly ruled out the reinstatement of pensions back to 2012 levels, labeling the move as unconstitutional and financially burdensome. This decision was reportedly influenced by advisories from the Finance Ministry, FNPF, and the Office of the Solicitor-General. The government highlighted that the 2012 reforms resulted from findings that pension payouts surpassed members’ accumulated savings, with the reinstatement projected to incur approximately $582 million in costs, including back payments and future liabilities.
Additionally, Cabinet cited Section 173(3) of the 2013 Constitution, which they claim restricts retroactive changes to the legal implications of the 2012 reforms. Concerns were raised that using Fund resources for back payments could negatively impact member balances, while funding costs through the National Budget would strain taxpayers.
Nonetheless, the Coalition Government announced that beginning August 1, 2024, affected pensioners would receive reinstated payments on a prospective basis, a decision funded by taxpayers at an anticipated cost of $57 million over time. The Pensioners’ Committee, however, maintains that the issue remains unresolved and continues to advocate for renewed discussions on the matter.
This ongoing dialogue emphasizes the government’s commitment to addressing the needs of its citizens while grappling with financial constraints. The situation is a reminder of the delicate balancing act between maintaining financial stability within pension funds and ensuring the welfare of retirees who depend on their life savings.
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