FNPF members who withdrew their funds under the Tropical Cyclone Winston natural disaster assistance will lose out on partial interest which would, otherwise be credited today.
This is the second year that the FNPF will apply the new interest crediting formula that ensures that partial interest is credited on contributions received less withdrawals for the period, as well as for the full year on the opening balance.
FNPF’s Chief Operating Officer, Jaoji Koroi said it is important for members to understand that the 6.25 per cent interest credited depend entirely on the balance of their account, plus taking into considerations movements during the financial year 2016.
The Fiji National Provident Fund encountered major challenges associated with such large-scale operations, like the Tropical Cyclone Winston withdrawal assistance.
However, the Fund’s new administration system, Provident Fund Management Information System or ProMIS successfully processed the high volume demanded of it.
Koroi said Tropical Cyclone Winston Assistance is the biggest withdrawal assistance provided to its members since the Fund was established in 1966.
181,000 applications from 160,000 members were approved for the Tropical Cyclone Winston natural disaster assistance with a total payout of 275 million dollars.
The assistance process has again demonstrated the important social security role that FNPF plays for their members and also left life-time learnings for the Fund to take into the future.
Koroi clarified that the Fund’s Return On Investment has not been affected by the Tropical Cyclone Winston withdrawals this year, although members’ balances have reduced it by 275 million dollars.
The Fiji National Provident Fund will credit approximately 239 million dollars to its members this evening following the Board’s decision to declare a 6 point 25 per cent interest for the financial year ending 30th June, 2016.
Last year, FNPF declared a 6 point zero percent interest totalling a pay-out of 226 million dollars.
Koroi said the interest declared is a testament of the positive flow-on effect of the FNPF Reforms.