The Fiji National Provident Fund (FNPF) plays a crucial role in Fiji’s financial system and must be safeguarded to protect the savings of all workers in the country. It is vital that pensioners’ entitlements remain untouched and preserved. The funds accumulated through contributions are distributed according to guidelines set by the FNPF Board.
Established prior to Fiji’s independence, FNPF was created when AD Patel, serving as the member for social services in 1965 under Chief Minister Ratu Mara, introduced the bill that led to its formation. Hugh Robinson, the first CEO, provided essential leadership, followed by Lionel Yee, who managed FNPF prudently. As contributors retired, they were confident in the integrity of the rules governing the fund.
Throughout the decades, different governments maintained the integrity of FNPF, ensuring that the laws regarding contributions and pension payouts were strictly upheld, even amid coups that did not threaten the fund’s stability. The FNPF Board included representatives from various sectors, giving contributors a sense of security regarding their investments.
However, the situation changed after the 2006 coup, when the unelected FijiFirst government began interfering with the FNPF Board’s composition, appointing individuals who lacked independent judgment. In 2011, a decree was issued to restructure FNPF without consultation, which resulted in a 50% reduction of pension funds for certain seniors. This action, based on the unfounded claim of impending insolvency, was shielded by legislation that prevented legal challenges to the decree.
The 2013 Constitution disproportionately empowered the government, leading to measures detrimental to the interests of FNPF contributors. The Minister for Economy has been accused of using FNPF funds irresponsibly, investing in various projects that did not benefit pensioners, while accruing unprecedented levels of debt.
As the current Minister of Finance aims to restore slashed pension funds by August 1, 2024, critics argue that this approach is insufficient. They question the legitimacy of acknowledging an inappropriate decree from 2011 and insist that rightful entitlements should be restored immediately. Despite positive steps from the Minister, many believe more must be done to rectify past injustices faced by pensioners.
There is a growing consensus that FNPF should prioritize the interests of its contributors and ensure that pensioners receive the benefits they are owed without delay. Calls for accountability are directed at the current board, suggesting that a change in leadership may be necessary to address these longstanding issues effectively. The focus now is on tangible action to uplift the conditions of seniors under the FNPF system.