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News

FNPF declares 6% interest rate

June 25, 2015 5:40 am

The Fiji National Provident Fund has declared an interest of six percent equating to an estimated $224.8 million that will be distributed to FNPF members’ accounts next Tuesday.

This year’s interest is paid under the new formula that ensures interest is credited at the end of the financial year and not the previous year’s closing balance as was the norm.

FNPF Board Chair Ajith Kodagoda says 2015 has been remarkable and one of the best in over a decade – showing that government-initiated reforms and the hard decisions have benefited members.

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He says the 6% interest, which is tax free – closely matches the income earned from investments, after allowance for operating costs.

Chief Investment Officer Jaoji Koroi says the separation of the pension business from current members’ contribution fund continues to augur well.

Ajith Kodagoda says there were a lot of nay sayers and employees were targeted on a personal level – but they’ve all been vindicated.

Other notable achievements for the 2015 include increased income from new investments like the Vodafone Fiji Limited and offshore, enhancement in IT systems and processes, commencement of Momi Hotel and the Greig Street Development Projects.

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