FNPF to address accounts with zero balance
February 11, 2021 7:00 am
The Fiji National Provident Fund is looking at measures to deal with issues of zero balance accounts.
Attorney General Aiyaz Sayed-Khaiyum says 53 percent of 23, 136 members over the age of 55 have zero balance in their accounts.
He also highlighted that about 18, 000 of the 59, 571 members have had no transactions in their account for over 10 years or more.
“There is a high probability that some members are no longer in employment, may have migrated or some could have potentially died and the records have not been kept up to date. It is also important to note that the FNPF only closes the members account when he or she comes forward to fully withdraw the Fund.”
Sayed-Khaiyum explained the several measures that will be taken by the Fund.
“In light of this, the FNPF Board is currently looking at related policy intervention to address the issues of zero balance and will explore options that will allow the Fund to firstly terminate membership of those aged 55 years and have zero balance accounts as there is a high probability that these members are no longer in employment. Terminate membership of those with no transaction over 10 years for those below 55 years. Deactivate accounts for those with no transactions for more than five years. Cancel membership of no contributions received after a lapse of 12 months from the membership start update.”
The Minister also highlighted that FNPF will also review the membership amount of those wishing to open a new account.
He adds members who have registered and have made no contributions will also be contacted and advised on the importance of contributing to their accounts and encourage to make regular contributions.