Fund's update on reforms
Friday, August 05, 2011
FIJI National Provident Fund members were largely concerned with the "timelines or phases of the revised pension design", chief executive Aisake Taito said while giving an update on the reform to The Fiji Times Business.
The Fiji Times Business asked the fund on the number of submissions received, how they were analysed, how many people were dedicated to analysing the submissions and whether some of the submissions would be taken on board.
The fund replied: "FNPF received a number of submissions, both written and oral, during the public consultation period.
"These submissions are currently being reviewed and subject to further actuarial assessment.
"Based on feedbacks from the consultation process, members generally have agreed on the need for changes to ensure sustainability at the fund, the need to deliver excellent services and the need to grow investments.
"All of the above are aligned to the objectives of the FNPF reform."
The fund however did not comment on the sustainability of the fund if those earning pension incomes less than $800 would not be affected.
Those earning below $800 have already been paid an excess of $109m or 67 per cent more than what they saved.
The above $800 have been paid an extra $95m or 74 per cent more than what they saved.
"For the fund to remain sustainable, it needs to continually adjust to the changing operating environment. The proposed pension reform is the first comprehensive review that has been undertaken by the fund since it was established in 1966 and the pension scheme was introduced in 1975.
"Based on actuarial studies, the proposed rates will ensure the sustainability of the fund in the next 40-50 years," Mr Taito said.
Pensioners above 60 years number 7349 and 6498 of them receive pension below the $800 category while those above $800 a month total 851.