The Fiji National Provident Fund (FNPF) has reiterated that it will not reimburse pensioners who saw their pension rates cut as a result of the 2012 reforms, a decision that impacted over 6,000 of its members. This confirmation was made by FNPF General Manager Alipate Waqairawai during a recent forum for members in Labasa.
When asked if FNPF would follow the government’s example and provide compensation to those affected, Waqairawai emphasized that the Fund’s decision has already been communicated to the Government. He stated that any pension payments now being made are funded by the Government, and further reimbursements would require government involvement.
The 2012 reforms were controversial, occurring under the unelected government of former Prime Minister Voreqe Bainimarama. Critics of the reforms, including economist Dr. Wadan Narsey, have argued that the pension rate cuts breached contract obligations. Narsey has called for a complete review of the FNPF’s governing laws, advocating for fairness and accountability in the operations of the fund.
In a positive development, the current government has allocated $4 million in its budget for the fiscal year 2024-2025 to support pensioners affected by the 2012 reforms, providing hope for those impacted. Deputy Prime Minister and Minister of Finance Biman Prasad announced that individuals who opted for reduced pension rates would have their pensions restored starting August 1, 2024. This measure is intended to address historical grievances and restore trust with pensioners while paving the way for better financial governance in the future.
Moreover, the government’s commitment underscores a broader goal to rectify past injustices within Fiji’s pension system, reinforcing the importance of transparency and the right of citizens to seek justice in financial matters involving their retirement funds. As these changes unfold, there is an encouraging sentiment that a more equitable resolution for affected pensioners is on the horizon.
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