Declining FNPF contribution a concern

Posted on Matavuvale.com -By Rachna Lal - July 21, 2010 

A Fiji academic says member contributions to the country’s only superannuation; the Fiji National Provident Fund (FNPF) peaked in 2006 but then started reducing from there on.

Dr Rohit Kishore, a senior lecturer at the University of the South Pacific’s School of Accounting and Finance, speaking at the Fiji Economy Update 2010 said this is mainly due to mass migration.

“The other major issue is people are taking out their benefits more than contributions being made which will finally have an impact on our social security,” he stressed.

He highlighted the withdrawal in 2009 was $75.43 million compared to $57.9 in 2008.

Kishore attributed most of the withdrawals to migration, partial withdrawals and people taking money out upon retirement.

“People should be mindful that these money is o provide cushion when people get old and if they keep taking little money out for small difficulties, then they will find it more difficult in the future.”

He acknowledged FNPF tightening the withdrawal policy which will automatically deter people from withdrawing from this superannuation fund.

Kishore is hopeful future investments by the FNPF will be based on careful decision and the end result will see members receiving maximum interest from FNPF.

Comments posted on Matavuvale.com

• the major contributing factor of decline in fnpf contribution is the rising number of unemployment.
• Why should people be paying into a pool of money that is being used to suppress them? Those who conribute into it should be allowed to withdraw it when they leave the country. But I know that this is not the case anymore, I have family members who are not allowed to take out their contribution even though they have moved abroad.
• Massive withdrawals, unemployment, mass migration, partial withdrawals, failed projects and worst still the regimes loans have really killed the bull. Once upon a time this was the pride of the nation. Not anymore.
  It's a white elephant.
  1.
  a.A rare, expensive possession that is a financial burden to maintain.
  b.Something of dubious or limited value.
  2.An article, ornament, or household utensil no longer wanted by its owner.
  3.An endeavor or venture that proves to be a conspicuous failure.