FNPF removes contribution limit for voluntary members
March 19, 2021 4:20 pm
The Fiji National Provident Fund has removed the limit placed on payments for voluntary members.
This comes after approval from the FNPF board and also includes the limit on compulsory members opting for additional contributions.
FNPF Acting Chief Executive Officer, Viliame Vodonaivalu, announced that the removal is effective from today adding that all limits previously placed on the amount that voluntary and compulsory members could pay are no longer applicable.
Vodonaivalu says the FNPF Board has decided to provide members with these two opportunities to add value to their savings.
He says the current cap or limit for voluntary contributions is $200,000 per year and the removal of this limit means that voluntary members can now pay any amount as and when they wish to, without restrictions.
The FNPF CEO says removing restrictions for additional contributions will allow members and/or employers to pay more than 30% of the member’s wages.
The removal of the 30% cap means that members can pay more in additional contributions provided their employers ensure they comply with the Employee Regulations Act, which considers employees’ financial commitments.
Vodonaivalu says to date, the Fund has more than 22,000 registered voluntary members, with only 5,806 actively contributing.
A total of 12,050 employers and 5,708 members are currently paying additional contributions.
Vodonaivalu adds that FNPF has grown members’ funds by paying $1.43 billion over the last five years in interest alone averaging 6.14% from 2016 to 2020.