71 per cent members have below $10, 000
14 March, 2019, 10:08 am
THE Fiji National Provident Fund continues to manage the ongoing challenge of low member balances, says chief executive officer Jaoji Koroi.
Mr Koroi said as of June last year, 71 per cent of their members had balances below $10,000 and of this 57,000 were over 50 years old and retiring in the next five years.
He was responding to questions from the Standing Committee on Social Affairs on the FNPF 2018 annual report yesterday.
Mr Koroi said the challenge for the fund was to strike a balance between assisting members achieve a better quality of life and in savings for retirement.
Committee chairman Viam Pillay raised the issue of low balances and withdrawal policies before the reforms at the FNPF to which the team from FNPF highlighted that after the reforms the withdrawal policies changed.
General manager member services Alipate Waqairawai said before the reforms members could withdraw two thirds of their contributions which had led to the case of low member balances.
However he said with the new policies members were only permitted to withdraw 30 per cent of their funds.
Mr Waqairawai said because of the changes they expected members to have larger balances in their accounts in the next five to 10 years.