FNPF’s sole purpose is to save funds for members, Says Singh
The Fiji National Provident Fund (FNPF) is not mandated to issue loans to members because its sole purpose is to save funds for them.
Chief operating officer Pravinesh Singh highlighted this on Thursday during the FNPF annual member forum at Labasa Civic Centre. Mr Singh said the main reason why FNPF doesn’t give loans to its members was because it wants to ensure savings are available for members when they retire.
“The fund’s core objective is to secure your future, to have meaningful retirement income when you decide to withdraw from the FNPF,” he said.
“We’re not a bank, for banks the function is to give loans and they are the financial institution to issue loans.”
As long as members fulfill the prerequisites and circumstances of the particular withdrawal, FNPF members are eligible to entirely withdraw their money under the FNPF Full Withdrawal Policy and Guidelines for retirement, migration, low balance accounts and medical incapacitation.
“The main reason why we don’t loan is because we are here to build up your savings,” Mr Prasad said.
“Additional contribution is an initiative to increase your savings for retirement other than the normal contribution that comes from the employer.”
Withdrawal Qualifications
■ A member who has reached the retirement age of 55.
■ Member is entitled to withdraw all funds in the general & preserved accounts.
■ Member may opt for retirement products that include life pension, term annuity or lump sum withdrawal
■ Member is eligible to re-join FNPF as a compulsory member after the first full withdrawal if he/ she is still employed