Suva, Fiji
Temp: 81 °F / 27.2 °C
Wind: 19.3 KMH
Mostly Cloudy
LOCAL NEWS
October 12, 2009 10:15:05 AM

The Fiji National Provident Fund will soon know whether or not it can sustain its current pension rate, as it is expecting the results of an actuarial study undertaken by Mercer (Australia) Pty Ltd. 

FNPF had announced Mercer’s appointment in June, when the then board chairman Parmesh Chand said the review was part of reforms to ensure that FNPF’s major product, which is pension, remained viable and sustainable in future.

“Mercer is conducting an actuarial study in terms of the sustainability of the pension fund. So hopefully we will be getting that report very soon - hopefully by end of this month,” said FNPF chief executive officer Aisake Taito. 

Actuarial reviews on FNPF were conducted by the International Labour Organisation in 1997 and 2006, and had recommended the reduction FNPF’s pension rates.

In 1999, the Fund regressively reduced this by one percent every year from 25 percent to 15 percent last year.

A similar assessment held by the World Bank in 2008 suggested that the 15 percent rate was still not sustainable for the Fund in the long term, and that it had to be reduced further. 

Taito said Mercer’s review will look at relevant information, such as demography, and the decision on whether or not to reduce the pension rate would be based on information collected.

Mercer’s recommendation will be forwarded to the FNPF Board, who will then hold nation-wide consultations with all stakeholders.

* Get the latest weather on your phone. Txt VLWH to 333 now

Post a Comment
Bookmark and Share
Posted Comments
No comments, but you can post the first comment!
SPORTS
Fulham stun nine-man Juventus to reach last eightFulham staged a stunning fightback to reach the Europa League quarter-finals with a 4-1 victory against nine-man Juventus that clinched a 5-4 aggregate triumph over the Italian giants on Thursday.
BUSINESS
BSP assures new customers of continuityThe Bank of South Pacific in Fiji has assured customers of the former Colonial Bank of Fiji that there will be no operational changes following BSP’s takeover of Colonial.
WORLD
Mother gets 15 years for killing six babiesA court on Thursday sentenced a French mother to 15 years in jail for smothering or strangling to death six of her newborn babies.
ENTERTAINMENT
Bullock cancels premiere amid rumorsActress Sandra Bullock abruptly canceled a planned visit to London for the UK premiere of her movie "The Blind Side" for which she won an Oscar, amid speculation Thursday about her marriage.
OFFBEAT
US lawmakers wowed by bullet trainUS lawmakers voiced awe Wednesday at taking a ride on Japan's sleek bullet trains, with one congressman saying he felt like he was in a videogame.
FIJIAN
Tekivu na vuli e na ciwaSa vakadeitaka na minisitiri ni vuli ni na tekivutaki tiko na vuli e na ciwa na kaloko na vei mataka, ka sega e na walu.