The Fiji National Provident Fund (FNPF) has set a new limit of $250,000 on additional and voluntary contributions for its members, effective February 1, 2025. This decision follows a recent gazette by the Government on January 31, 2024.
In statements made by Chief Executive Officer Viliame Vodonaivalu, the 2021 removal of the contribution limit was aimed at allowing members to enhance their savings during the pandemic. However, with economic activities resuming to normalcy, this new cap is seen as essential for ensuring that the Fund’s assets continue to adequately meet future liabilities to its members.
Vodonaivalu pointed out that the introduction of a contribution limit is a measure aimed at maintaining responsible stewardship of member assets, ensuring sustainability, liquidity, and fairness for all FNPF members. He noted that higher contribution rates, particularly the reversion of the compulsory member contribution rate to 18%, further justified the need for this limit to sustain the Fund’s long-term health.
Under Section 38(6) of the FNPF Act, the overall amount of additional contributions for any member in a financial year cannot exceed the prescribed limit. The new limit aligns with this legal requirement, positioning the Fund to remain compliant and secure while safeguarding the interests of its members.
Members will still have the option to make additional contributions through various methods, including the MyFNPF App, internet banking, or by visiting an FNPF office.
This adjustment signifies a forward-thinking approach as FNPF continues to manage its assets effectively. The decision reflects a commitment to ensuring that the fund remains equitable and sustainable for current and future generations of Fijians. The implementation of this cap is likely to encourage responsible savings while maintaining the overall health of the Fund.
In light of this new limit, FNPF’s continued growth and successful management practices offer a hopeful outlook for its members, emphasizing the organization’s dedication to their financial well-being amidst changing economic conditions.
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