The Fiji National Provident Fund (FNPF) has reported that over $185,000 remains unaccounted for in its Suspense Account as it seeks to accurately identify the rightful owners of these funds. In the recently released 2024 annual report, FNPF disclosed that the Suspense Account recorded a total of $185,714.62 for the year, which marks a significant increase from the $110,610.27 reported in 2023.
The increase in the Suspense Account is largely attributed to the recovery of longstanding contribution debts and undistributed contributions from previous years. However, FNPF faces challenges, particularly due to the closure of various businesses, hindering efforts to determine the ownership of these funds.
For businesses that are still operational, FNPF has actively engaged with them to facilitate the identification of their employees and ensure accurate member details are submitted, allowing contributions to be credited correctly. Additionally, the Fund recently moved $12,640.61 of member funds to an Unclaimed Deposits Account following a thorough inquiry, citing insufficient member details provided by employers as the reason.
Employers are reminded of their responsibility to submit accurate member information at the time of registration, as delays and inaccuracies contribute to the funds being placed in the Suspense Account. In response to these ongoing issues, FNPF is collaborating with employers to rectify the current situation regarding member savings within the account.
Moreover, FNPF has announced a new penalty regime for late contributions, set to take effect next month. Starting January 1, 2025, employers will be required to pay a 10% penalty on outstanding contributions each month, including for contributions due in December 2024.
In summary, while there are significant challenges ahead for the FNPF, the proactive measures being taken to address these issues demonstrate a commitment to ensuring that workers receive their rightful contributions. The implementation of a new penalty system may further motivate employers to maintain accurate records, which is a positive step for the accountability of workers’ funds in Fiji.
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