Reforms saved FNPF from drying out: Sayed-Khaiyum
April 5, 2019 7:41 am
The Fiji National Provident Fund would have completely dried up by 2056 if there were no reforms.
Economy Minister Aiyaz Sayed-Khaiyum says the reforms were crucial for the benefit of its members.
Sayed-Khaiyum says there are approximately 10,000 pensioners during the reforms and no one was affected.
He adds these pensioners during the reforms were given two options if they wanted to carry on with their pension, or receive the whole sum of their money.
Sayed-Khaiyum says out of the 10,000 pensioners, about 6,700 decided to stay with 33 percent taking out their pension fund.
“We have separated the pension business from the current members fund to eliminate cross-subsidization is what use to happen and our honorable leader of Opposition would know in his time as a Prime Minister. There was something like about 25 reasons upon which a person could go and withdraw funds from FNPF, basically treating it like a saving bank. FNPF is not a saving bank as it is there for member’s pensions.”
Sayed-Khaiyum says the reforms have also enabled pensioners receiving below $100 to receive $100 monthly.
The reforms also include the change in pensioners act and the formation of a pension scheme.