The Fiji National Provident Fund (FNPF) stands as a critical pillar of Fiji’s financial landscape and must never be allowed to fail, serving as the protector of the hard-earned savings of every worker in the country. The rights of pensioners should always remain a priority, and their entitlements must not be compromised.
FNPF was established before Fiji’s independence, and in 1965, Hon. AD Patel, serving as the Member for Social Services, introduced legislation that led to its formation. Hugh Robinson became its first CEO and provided strong leadership, succeeded by Lionel Yee, who diligently safeguarded the fund.
Pensioners transitioning into retirement have generally adhered to the established guidelines, contributing to their peace of mind. The government of the time upheld the integrity of FNPF funds, and the laws regulating contributions and pension payouts were respected and executed ethically, even amidst political upheavals like coups, thanks to a balanced board comprising representatives from various sectors.
However, in the aftermath of the 2006 coup, the unelected FijiFirst government began to interfere with the FNPF Board’s composition, appointing individuals who compromised its independence. A decree issued in 2011 significantly reduced pension payouts for some seniors under the pretext of structural reform, claiming that failing to act would lead to FNPF’s insolvency—a claim that was unfounded. This action was later backed by legislation that prevented any legal challenges, compounding the issue of governance.
The powers granted by the 2013 Constitution enabled further unwarranted actions by the government, leading to a significant erosion of FNPF’s purpose. The use of FNPF funds for various governmental initiatives, such as hotel acquisitions and questionable investments, has raised concerns about the Minister of Economy’s motives and the implications for pensioners.
The burden of unprecedented national debt has been likened to slavery, raising alarms about the financial future of the country. The Minister of Finance now faces the challenging task of addressing this issue, particularly after the 2022 elections where a potential victory for FijiFirst could have led to further disaster.
Despite the problems stemming from the government’s previous decrees, the Finance Minister’s recent announcement to reinstate cut pension funds by August 1, 2024, is perceived as insufficient. Critics argue that merely restoring funds without addressing the past injustices does not rectify the harm inflicted upon seniors.
Furthermore, calls from the community stress that FNPF should not retain funds that rightfully belong to seniors while claiming profits. The chairman’s public appearances celebrating financial success have only amplified discontent regarding the plight of pensioners.
Demands for FNPF include restoring trust, safeguarding contributors’ interests, and addressing entitlements promptly. The historic commitment shown by past leaders to ensure FNPF’s autonomy must be restored, and the current board is urged to resign if it continues to uphold the controversial decree from 2011.
Action rather than inaction is necessary to address the senior citizens’ grievances, aligning with the values of compassion and responsibility expected from the government and its financial institutions.