Over $185,000 has been found unaccounted for in the Suspense Account of the Fiji National Provident Fund (FNPF) as it seeks to determine the rightful identities of workers, according to its recently released 2024 annual report. The Suspense Account recorded a total of $185,714.62 this past year, marking an increase from the $110,610.27 reported in 2023.
The rise in the Suspense Account is primarily due to the recovery of outstanding contribution debts and undistributed contributions from previous years, with FNPF’s team actively addressing these issues. One significant challenge noted by FNPF involves the closure of businesses, which complicates efforts to ascertain the ownership of these funds. For businesses still operating, FNPF is providing assistance to ensure they correctly identify their employees and submit the necessary details to ensure contributions are accurately credited to their members’ accounts.
In addition, the FNPF has transferred $12,640.61 of members’ funds to the Unclaimed Deposits Account, attributed to insufficient member details provided by employers. The organization emphasized that it is the responsibility of employers to deliver accurate details when employees are registered following their recruitment.
To further rectify these situations, the FNPF continues to engage with employers who have suspense account listings to expedite the resolution of member savings currently in the Suspense Account. Starting January 1, 2025, the FNPF will introduce a new late contribution penalty regime, with employers required to pay 10% of any outstanding contributions monthly, including December 2024 contributions. This new policy aims to encourage compliance and ensure that all contributions are correctly attributed to employees.
Overall, while challenges persist in resolving the Suspense Account issues, FNPF’s proactive approach and upcoming policy changes indicate a commitment to improving the identification of member contributions and fostering better compliance among employers. This reflects the organization’s dedication to enhancing the financial security of its members moving forward.
Leave a comment