Pension rate change imminent: Kodagoda

The review of the Fiji National Provident Fund (FNPF) Act and Pension Scheme has taken a new twist.   

The current 15 percent pension rate contribution made by all FNPF contributors will soon change.

This was announced by the Fund Board Chairman, Ajith Kodagoda during a press conference today.

Kodagoda was however tightlipped on stating whether the current contribution would increase or decrease.

“There will have to be some changes made but the new figure has not been derived yet.” Kodagoda said.

He said the new contribution rates would be based on scientific measures.

The Chief Executive Officer for FNPF, Aisake Taito said they are currently working on the new proposed pension rate and wider consultation will be considered before an actual figure is announced.

“The new rates will sometimes be announced in June as many businesses in the country will be going through the end of their financial year.” He said.

Meanwhile, the consultants who are currently reviewing the current Act highlighted that major changes should be made in the three major areas of the Fund.

Shauna Tomkins of Promontory Financial Group of Australasia said there needs to be major change in the proper financial footing of the fund.

“The fund needs to refocus on retirement as there are no proper provisions for retirement.” She said.

She added that the fund also needs to improve its legal and governance framework.

The symposium continues tomorrow at the Holiday Inn in Suva where major announcements would be made on the future of the fund.

By Nasik Swami

 

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