PROMINENT local accountant Jenny Seeto has raised concerns of unfairness in Governments Pension Restoration Fund set up in last year’s national budget to reinstate pension payments for members that had been affected by the Fiji National Provident Fund (FNPF) reform in 2011.
Ms Seeto was speaking in her capacity as an FNPF member during the FNPF Law Review consultations held at the Suva Civic Center on Tuesday night.
The Coalition Government had introduced an FNPF pension restoration fund in last year’s national budget (FY2024-2025) to reinstate pension payments for members that had been affected by the FNPFs reform in 2011, which mandated the reduction of pension rates.
Under the initiative, the Government will pay out $4million a year to affected pensioners.
Ms Seeto said while she sympathises with the affected pensioners, the $4m allocation could be better used elsewhere.
“As a taxpayer I would rather the $4m a year be used towards CWM (Colonial War Memorial Hospital) for example, because so long as there is the ability for FNPF to pay the pensions, so instead of paying eight per cent to members (annual interest credited to FNPF members), why don’t they (FNPF) pay less and gradually restore the pensions themselves. That’s one suggestion,” Ms Seeto said.
Ms Seeto said while the Government’s initiative was commendable, she felt it was not the right direction and called for more clarity and good communication from both parties in order to put the matter to rest.
“It’s never been explained why the law can’t change and I don’t know whether it is a decree, I’m just guessing that because it’s a decree, it’s linked onto the constitution but I think we need some education around why the law can’t change.
“Is it to do with sustainability? Again, (it’s been) 14years since this all happened. I think we just need clarity around why the law can’t change and some good communication so we can put the matter to rest.”
FNPFs board said the fund was disallowed to continue its previous pension payments after its reforms in 2011.
“The issue now about the restoration is again something we can’t do because it’s under the Constitution, because any decree amended is amended moving forward not amended moving backwards,” FNPF board member and workers’ union representative Attar Singh said. “The 2012 decree under which the pension reform was undertaken was done by an unelected Government and I think many were unhappy about that, I was one of them as well.
“The Government’s position about taking the step to continue paying the pensions…that’s a Government decision.
“Government’s budget has nothing to do with the Fund (FNPF).
“The Fund’s position was that the Fund was disallowed from continuing the previous pension.
“It had undergone a reform, and members were given a choice on options to take, and the members exercised their option.
“The point is that the law as it is, the Fund cannot use members’ funds against what the law is. So, what the law currently says is: ‘We can’t give it’, so we cannot give it,” Mr Singh said.
In delivering his Budget speech last year, Deputy Prime Minister and Minister for Finance Prof Biman Prasad said the full cost of the restoration initiative is estimated to be around $57m over the next two decades.
Note: This article was first published on the print version of the Fiji Times dated August 21, 2025