FNPF records low collection in 2022

January 25, 2023 12:45 pm

Fiji National Provident Fund Chief Executive, Viliame Vodonaivalu.

The Fiji National Provident Fund recorded low collection in the last financial year.

Chief Executive, Viliame Vodonaivalu says they collected $395.2 million, but they would normally collect around $600 million in a financial year.

Vodonaivalu says this as the contribution rate decreased from 18% to 10%.

Article continues after advertisement

“As a result in the cut of contribution rate from 18% to 10%, the collection was low as $395.2 million. So in a normal year, normally we collect around $600 million. The contribution rate was increased to 14% as of 1st January 2023. We are now pursuing the government to have the contribution rate fully restored as soon as practical.”

Vodonaivalu says the contribution rate was increased to 14% as of January 1 2022, but they are pursuing the government to fully restore it.

He says at the end of the last financial year, the member’s fund in total stood at $6.7 billion – an increase of $100 million or growth of 2% despite the negative net withdrawal from the previous financial year.

Vodonaivalu says $600.5 million was available for distribution from net increase and net asset – an increase of $104 million or a growth of 21% from the previous financial year.

He says they were able to declare a 6% interest in 2022, which enabled them to distribute $370 million to over 392 members’ accounts.

In the past five years, the fund has credited over $1.6 billion to members’ accounts.