The Fiji National Provident Fund has announced a remarkable financial turnaround in its 2023 Annual Report, marking a positive net contribution of $100.3 million.
The positive turnaround has been achieved by FNPF after facing two years of negative net contributions due to the negative repercussions of the COVID-19 pandemic on the labor market.
Furthermore, the Fund continues to diversify its investment portfolio, resulting in assets exceeding $9.5 billion.
This is a result of strong financial and operational success, which contributed to a $521.7 million increase in member funds, reaching $7.5 billion.
Chief executive, Viliame Vodonaivalu, says this year has been a remarkable journey, and the Fund is proud of what they have accomplished together.
Other key financial highlights include members’ voluntary and additional contributions increasing to $74.6 million.
The Fund’s net income has increased by 19.2% to $775.8 million.
Vodonaivalu says the Fund has also declared a 7% interest rate for the fiscal year, with a total of $457.6 million distributed to member accounts.
$441 million was paid out in withdrawal assistance to 52,375 members, aligning with the Fund’s hybrid strategy of meeting both retirement and pre-retirement needs.
Vodonaivalu says through collaboration with the Government, the contribution rate has been reinstated to 18% and will be effective from January 1st, restoring pre-pandemic rates for optimal retirement savings.
Furthermore, the CEO says the amending of the FNPF Act, will allow for international expansion of the Fund to open an office in Australia to facilitate superannuation services for Fijian migrant workers to build and access their retirement savings.
The Fund’s membership has grown and in this financial year it has recorded 23,889 new members while also supporting 13,026 exits through entitlement withdrawals.