The Parliamentary Standing Committee on Social Affairs has welcomed robust financial results from the Fiji National Provident Fund (FNPF) but warned that investment constraints, an ageing legislative framework and member-service gaps threaten the fund’s future resilience. In its review of the FNPF’s 2025 Annual Report, tabled in Parliament this week, the committee said gains in collections and dividends were offset by limits on offshore investment transfers and long-delayed law reform.
The committee recorded that FNPF revenue collection reached $1.1 billion as at June 30, 2025, up from $909 million in the previous year. Dividend income from major holdings — including shares in BSP, ATH, HFC, hotel assets and the fund’s offshore portfolio — rose to $190.3 million in 2025 from $144.8 million in 2024, the report notes. The committee also commended the fund for holding operational expenses at $63 million despite rising demand for services and inflationary pressures, describing this as evidence of “disciplined cost management.”
However, the committee drew attention to significant investment and governance constraints. FNPF’s offshore portfolio expanded to $1.1 billion, yet the Reserve Bank of Fiji approved only $100 million in transfers, limiting the fund’s ability to move assets or diversify further offshore. The committee said this bottleneck could restrict strategic asset allocation and hamper efforts to protect member returns against domestic market volatility.
The review also highlighted long-standing delays in updating the FNPF Act — a statutory review that the committee says first began in 2011 but remains incomplete. That delay, the report warns, leaves the fund operating under an outdated legal framework at a time when global financial markets, digital services and cross-border employment patterns are changing rapidly. The committee also raised concerns about members whose accounts are held under “suspense” status and are reportedly not receiving full benefits, urging stronger engagement with employers and administrators to resolve outstanding entitlements.
On specific investments, the committee noted continued progress on the Westin Hotel development at Denarau, reporting that phases two and four of the project are expected to be completed by April 2026. While the hotel development represents a material domestic investment for the fund, the committee said a balanced pipeline of both domestic and offshore opportunities is necessary to diversify risk and optimise returns for members.
To address the challenges, the committee set out a series of recommendations: expand permissible investment opportunities, work with the Reserve Bank and other regulators to smooth offshore capital movement, fast-track the legislative review of the FNPF Act, strengthen engagement with overseas employers to clear suspense accounts, and enhance member services through awareness and training programs. The report stressed that these reforms should be pursued while safeguarding member returns and modernising the fund’s operations.
The committee’s findings form the latest development in parliamentary oversight of FNPF operations and signal growing pressure on authorities and the fund’s board to balance strong short-term financial performance with structural reforms aimed at long-term sustainability.