The Fiji National Provident Fund says the COVID-19 pandemic pushed them to rethink, reset assumptions and priorities.
This was highlighted in the Fund’s 2022 Annual Report, where the FNPF CEO Viliame Vodonaivalu said the pandemic thwarted its retirement savings objectives, which forced members to withdraw from their funds.
Vodonaivalu said this was exacerbated by decreased contributions, growing unemployment benefits, particularly for members with low account balances.
He said the pandemic has demonstrated that nothing is ever certain, and that our models and operational design must be more adaptable and sustainable.
“As a result of the cut in contribution rate from 18 per cent to 10 per cent, collections were low. Although, it was 23.7 per cent more than the 2021 estimates, withdrawals were significant at $467 million, resulting in negative net contribution yet again.”
Vodonaivalu added that additional and voluntary contributions brought in a total of $62.2 million to offer a cushion to our financially challenged cash flow position.