The Fiji National Provident Fund (FNPF) announced a significant growth in its assets, reaching $10.6 billion as of June 30, 2024, up from $9.5 billion the previous year. This increase translates to a net return on investment of 8.5 percent, allowing the Fund to declare an 8 percent crediting rate and distribute $572.4 million in interest payments to its members.
FNPF’s Chief Executive, Viliame Vodonaivalu, attributed this financial success to strategic investments, including new partnerships and expansions of existing stakes, which reflect the Fund’s dedication to enhancing performance and securing a stable financial future for its members. The total member funds grew by $900 million to a substantial $8.1 billion, marking a 12.5 percent year-on-year increase primarily driven by higher contribution collections.
Despite facing challenges from the rising cost of living and limited job opportunities, Vodonaivalu highlighted the Fund’s ability to leverage key opportunities, leading to consistent growth and favorable outcomes for its members. He emphasized the organization’s ongoing commitment to operational excellence and member-centered initiatives.
Key highlights from the Fund’s recent performance include the declaration of an 8 percent interest rate for the fiscal year, with a total of $2.3 billion paid out to members over the past six years. The reinstatement of the contribution rate to 18 percent in January 2024 reinforces their commitment to enhancing retirement savings. The Fund recorded a net contribution of $323.2 million, demonstrating a return to pre-pandemic contribution levels, with total contributions at $779.8 million compared to $456.6 million in withdrawals.
In a notable outreach effort, the FNPF has expanded membership to include infants from birth, promoting early saving. Initiatives such as a Gift Card program to boost retirement savings and the simplification of penalty systems for contributions have also been introduced. Efforts to facilitate contributions from Fijians abroad have been made through agreements with Australia, New Zealand, and Pacific Island nations. The financial year 2024 also saw the addition of 28,703 new members, balanced by 13,575 exits through entitlement withdrawals.
The FNPF’s Annual Report for 2024 was presented in parliament on December 6 and will be shared with members during the Annual Member Forum in early 2025.
This growth in the FNPF is a hopeful indication of resilience and a positive trajectory for the financial future of its members. As the Fund adapts to changing economic conditions and continues to innovate, it remains committed to ensuring that members maximize their retirement savings and secure their financial well-being.
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