The Fiji National Provident Fund (FNPF) has established a new annual limit of $250,000 for additional voluntary contributions from its members, effective from February 1, 2025. This decision follows the removal of such caps during the COVID-19 pandemic in 2021, which aimed to support members in bolstering their savings during difficult economic times.
FNPF’s Chief Executive Officer, Viliame Vodonaivalu, explained that while the previously removed limit was beneficial, reintroducing the cap is necessary to ensure that the Fund’s assets are sufficient to cover future liabilities to members. He emphasized that resuming normal economic activities and the recent increase in the compulsory contribution rate back to 18% necessitated this adjustment to maintain long-term sustainability and equity among members.
The new contribution limit aligns with legal requirements under the FNPF Act, reinforcing the Fund’s commitment to responsible management of members’ assets. Vodonaivalu assured members that the introduction of this cap is about protecting their financial interests and fostering the Fund’s stability for both current and future generations of Fijians. Members can still make additional contributions through multiple channels, including the MyFNPF App, online banking, and FNPF offices.
Interestingly, the recent annual report for 2024 revealed positive trends in member savings, with an increase in the number of members holding over $500,000 in their accounts rising to 426, up from 366 the previous year. This signals an overall strengthening of financial well-being among Fijians.
These developments highlight a proactive approach by the FNPF to ensure the ongoing health of the Fund while encouraging responsible savings among its members, paving the way for a more secure financial future.
Leave a comment