The Fiji National Provident Fund (FNPF) is the only social security and superannuation fund in Fiji that both employers and workers contribute to. Employers are as equal stakeholders in the fund as the workers, and both parties want to see that the fund is both solvent and sustainable to ensure financial security in retirement.
In recognising the importance of the fund, the Fiji Commerce & Employers Federation (FCEF) has made a comprehensive submission to the FNPF Law Review Committee on the FNPF Act (2011).
The summary recommendations are:
1. Sustainability, accountability and representative governance
Robust laws and policies must be embedded within the FNPF framework to ensure long-term sustainability, transparency, and accountability to its members. The composition of the FNPF Board should be recalibrated to include greater representation from both employer and worker groups.
2. Expanding the lifecycle mandate
The purpose and objectives of the FNPF should evolve beyond a narrow focus on retirement. The Fund must be positioned as a lifelong social protection mechanism – supporting members throughout their working years, into retirement, through old age, and ultimately ensuring dignity and independence until death. This broader mandate reflects the changing needs of Fiji’s workforce and the realities of an ageing population.
3. Employers & workers representation through FCEF and FTUC nomination
To ensure meaningful employer consultation and sectoral alignment, employer representatives on the FNPF Board should be nominated by the Fiji Commerce & Employers Federation (FCEF) – the most representative national employer body. To uphold equity and balance, the Fiji Trades Union Congress (FTUC), as the most representative national workers’ organisation, should be permitted to nominate two worker representatives to the Board. All Board nominations must actively consider gender balance.
4. Retention of board qualification criteria
The existing qualification criteria for Board appointments should be retained to safeguard competence, professionalism, and fiduciary responsibility. These standards are essential for maintaining strong governance, strategic oversight, and long-term sustainability of the Fund. In addition to nomination practices, gender balance should be explicitly embedded within the Board qualification framework. This ensures that diversity is not only encouraged but structurally supported through policy.
5. Employer contributions for equity and sustainability
The employer contribution rate should be stated at 8 per cent, ensuring equitability with workers contribution. A return to the 8 per cent benchmark reflects a balanced, sustainable approach that supports micro and small businesses, reduces the cost of doing business and reinforcing the principle of shared responsibility.
6. Strengthening compliance for fair market integrity
Streamlined and enforceable compliance mechanisms are essential to uphold the integrity of the FNPF system. A consistent and transparent compliance framework ensures that all employers operate on a level playing field – preventing unfair advantages, promoting accountability, and reinforcing trust in the Fund’s administration.
7. Offshore and diversification of local investments
(a) FNPF should be permitted to invest offshore, subject to Reserve Bank of Fiji (RBF) regulations and policy frameworks.
(b) To strengthen returns and support national development, FNPF should expand its local investment portfolio into high-performing and high-potential sectors such as manufacturing, agriculture, and business process outsourcing (BPO/KPO).
(c) FNPF should actively invest in the real estate and housing market through models that enable members to access strata-title arrangements, with pathways to eventual ownership.
(d) FNPF should explore investments in retirement homes and aged-care facilities tailored to both domestic and international markets.
8. Member benefits and incentives
(a) The current tax-free treatment of FNPF member benefits must be maintained.
(b) Introduce targeted incentives for members who opt to contribute above the mandatory rate.
(c) Members who choose to retain their savings in FNPF beyond retirement should be rewarded with enhanced returns, flexible withdrawal options, or access to tailored retirement products. Consider a simplified option for pensioners to provide “proof of life” evidence that does not require their physical presence in a FNPF Office.
(d) Offer structured business training (incubator and accelerator programs) and financial literacy programs for members approaching retirement or planning to invest their funds.
(e) Improve and increase coverage on health care and health insurance for members and those that retire.
9. Aligning retirement age across national systems
The FNPF retirement age of 55 should be rationalised to align more closely with the Government’s retirement age (60), the Social Welfare eligibility age (65), and Fiji’s rising life expectancy (currently 67).
10. Flexible withdrawal framework for continued employment
For members who choose to continue working beyond 55, the Fund should adopt a phased withdrawal model between ages 55 and 60.
(a) Partial withdrawal option: Members who opt to withdraw at 55 but continue working should be permitted to access only a defined percentage of their total balance or withdraw solely from their General Account. The Preserved Account should remain intact until formal retirement is declared.
(b) Incentivising deferred withdrawals: Members who choose not to withdraw at 55 and continue contributing should be rewarded through enhanced interest rates, loyalty bonuses, or access to exclusive retirement products.
(c) Alignment with social welfare benefits: Retirement age benefits and withdrawal structures should be reviewed to ensure compatibility with the Social Welfare system, enabling smoother transitions and reducing gaps in income support.
11. Legal will to supersede FNPF nomination form
In the event of a member’s death, a legally executed will must take precedence over the FNPF nomination form. This ensures that the distribution of benefits aligns with the member’s most current and legally binding intentions, reducing disputes and safeguarding the integrity of estate planning. Where no nomination exists, or the nomination is deemed invalid, the member’s legal will must serve as the default reference for determining beneficiaries.
12. Establishment of a dedicated disaster response fund
A dedicated fund should be established within FNPF to support members during officially declared national disasters. Withdrawals must be limited strictly to affected individuals. A declared disaster should trigger a government-led response, not an FNPF-led one.
13. Support for self-employment and business start-up
(a) FNPF should broaden its education-related withdrawal provisions to include accredited business and entrepreneurship training.
(b) A defined percentage of a member’s General Account (within the existing 30 per cent withdrawal threshold) should be permitted as collateral for business loans—particularly through strategic partnerships with Banks and Financial Institutions.
(c) FNPF should consider establishing a venture capital facility to support feasible, high-impact business proposals submitted by individual members or member collectives.
(d) Structured business training programs (incubators and accelerators) should be offered to members planning to invest their funds or transition into self-employment post-retirement.
14. Voluntary membership
The current “Voluntary Membership” category should be renamed and rebranded to better reflect its value and appeal—particularly to informal sector workers, subsistence earners, and micro-entrepreneurs. FNPF should design and offer specific financial products that cater to the unique needs of informally employed and subsistence-based members. These could include:
(a) Micro-savings plans with flexible contribution schedules
(b) Bundled benefits such as basic insurance, health access, or education support
(c) Mobile-based platforms for easy registration, contribution, and tracking
