FNPF TO EXTEND COVERAGE TO INFORMAL SECTOR

Fiji National Provident Fund (FNPF) members balance was affected by member income, withdrawals, inconsistent employment and inconsistent payments from employers.

FNPF membership grew by 23 per cent last year to stand at 441, 663 from 357,662 members in 2009, says Fund chief executive officer Jaoji Koroi.

Members funds grew by 126 per cent to stand at $6.1 billion in 2019 from $2.7 billion in 2009, Mr Koroi said.

He added member expectation continued to increase.The major concern for FNPF was the adequacy of savings upon retirement, he said. Extending coverage to informal sector was another area FNPF would branch into, Mr Koroi said.

He said 66 per cent of FNPF members will retire in the next 10 years with just $10,000 in their account, or 128,000 members.

Mr Koroi said 88 per cent of members earn below $30K in 2019.He said 32 per cent of employers consistently contributed to FNPF as a means of compliance.

He said the smaller employers were not consistent with payments in terms of compliance. He said 3200 employers were found to be inconsistent in their FNPF contributions.

Extending coverage

Mr Koroi said 520,000 people worked in the informal sector without retirement scheme. He said 88,000 farmers and 2500 seasonal workers were also among the lot the fund expected to cover in the informal sector.

He said taxi drivers and domestic workers had potential for coverage.

He said 128, 000 workers would not have enough to gain as pension upon retirement because of withdrawals.

“They would expect to turn to Government when they turn 65.”