Praneeta Prakash 
FNPF Chief Executive Viliame Vodonaivalu
The Fiji National Provident Fund will be crediting seven percent interest to around 405,000 member’s accounts tonight.
Chief Executive Viliame Vodonaivalu says an estimated $449 million will be credited.
He says the amount of interest that each member earns depends on their average daily balance.
“The increase in crediting rates this year is a reflection of our confidence in the strength of our investment portfolio. We understand that saving for retirement is a long-term commitment and we want to ensure that our members have the best possible returns on their investments. In the past six years the Fund has now paid over $2.06 billion dollars to members. We are proud to offer this rate to our members and it has been almost 24 years since the Fund declared a similar crediting rate.”
Vodonaivalu says the tourism industry has recovered remarkably, with many members returning to full employment as a result of the increased tourist numbers.
He adds that, as announced this morning, the Government will restore FNPF contribution rates to 18%, which is 8 percent for the employee and 10 percent for employers.
He says this restoration will grow member balances towards the retirement income they want.
Earlier this year, the Fund launched a new retirement product called the Draw Down Account, which allows DDA members to receive a monthly income as well as the flexibility to withdraw.
He says another key component of the product is that the account will also earn interest on an annual basis, and therefore, seventy-eight members will be credited an estimated 99 thousand dollars to their DDA accounts.
The amount of interest they receive will depend on their average daily balance, similar to the formula applied to a normal FNPF member.
The FNPF Board has maintained the special death benefit of $35 for the financial year 2024, and this will be deducted from member’s accounts tomorrow.
This payment qualifies members for a payment of $8,500 should they pass away between July 1 and June 30, 2024, and before they reach the age of 55.
