Despite the tough investment and operating environment, the Fiji National Provident Fund has announced an interest rate of 5 percent for the financial year ending today.
This means that $286.2 million will be credited to 388,071 member’s accounts at midnight tonight.
International valuation firms were engaged by the Fiji National Provident Fund to revalue all of FNPF’s investments.
Nevertheless, the Fund is able to approve a 5 percent interest rate for this financial year.
“Despite the tough investment & operating environment, I am pleased to announce that the Board has approved an interest rate of 5.0% for the financial year ending 30 June 2020.”
“This means that $286.2 million will be credited to over 388,071 member’s accounts at midnight tonight. Therefore, the Fund has now paid over $1.43 billion in interest to member’s accounts over the past five years”.
The amount that each member gains will depend entirely on their average balance during the year, but Koroi say they must have a positive FNPF balance.
“Last year, when we declared the interest, we had clearly advised members last year, that the interest declared was reflective of the one-off revaluation gains recorded in the accounts last financial year, and the rate would normalize this year.”
“However,with the added economic downturn impacted by COVID-19, it has resulted in the declaration of 5 per cent.Whilst this rate is lower than we have initially anticipated, it is still very competitive given the current economic and investment environment.”
FNPF reassures members that the Fund remains in a strong financial position.
“All industries, including the superannuation industry are facing immense challenges with the key challenge being the need to strike a balance between helping our members during this difficult period without losing sight of our core objective, which is to ensure that our members will have a meaningful income when they reach retirement.”
“The Fund has also taken a more vigilant position in its commitments and are strategizing to ensure that its operations are smarter and conducive to the current operating environment to protect members’ hard-earned savings, now and in the future.”
Fiji National Provident Fund has so far paid over $1.43 billion in interest to member’s accounts over the past five years.