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The Fiji National Provident Fund (FNPF) has announced changes to policies covering housing assistance withdrawals by members.
FNFP chief executive officer Aisake Taito said the changes were in the area of loan/mortgage arrangements to ensure that the interest of members ranked ahead of that of commercial lenders.
The changes require more stringent documentation evidence from members while reducing processing time for applications.
Changes have also been made to the Fund’s Village Housing policy.
The minimum housing eligibility requirement for the construction of a new home has been raised from $5000 to $8000, while that for upgrading and extension remains at $5000.
The policy has also been broadened to include detailed qualifying conditions under the scheme.
Taito said the changes were an affirmation of the board’s plans to realign the Fund’s services back to its core function.
“Our members’ interests remain paramount in this review,” he added.
“The Board needs to ensure the FNPF conforms to its role despite the challenges that arise,” Taito said.
He said withdrawal figures had reduced significantly since the last review of the FNPF’s partial withdrawal policy in April this year.
“This is a positive indication that members are taking heed of our advice to save their funds.
He stressed warnings by the International Monetary Fund, the World Bank and the International Labour Organisation, who conducted actuarial valuations on the Fund, to guard against excessive withdrawals by members as this was a deviation from the FNPF’s core function.
“As such, the FNPF policies will continually be reviewed through the period of our strategic plan timeframe,” Taito said.
The Housing Assistance policy change is effective November 2, 2009.
