MEMBER of Parliament Biman Prasad has defended the Fiji National Provident Fund’s current performance, saying the institution remains in a strong financial position while cautioning against risky offshore investments.
Speaking during debate on the 2025 FNPF Annual Report in Parliament, Prof Prasad said the fund’s strong results reflected improved economic conditions, stronger employment growth and sound financial management.
He highlighted the 8.75 per cent interest rate paid to members, the highest in 30 years, as a significant achievement.
Prof Prasad also criticised the 2011 pension reforms introduced under the previous government, saying the unilateral reduction in pension rates damaged public confidence in the fund.
“The way in which that was done sent a very, very bad signal to the members themselves,” he said, adding that many contributors chose lump sum withdrawals instead of pensions because retirement income had become less attractive.
He said when the Coalition Government came into office, it opposed a further reduction in the pension rate and gave a commitment that government borrowing would help keep the interest rate at a level that allowed FNPF to maintain the higher pension rate.
Prof Prasad also stressed the importance of prudence in offshore investments, warning that international markets carried significant risks.
“The last thing you want is overzealous management or boards looking at easier offshore options hoping for large returns.”
He commended FNPF for reforms introduced in recent years, including expanded housing withdrawals, lower membership entry age, overseas member engagement and improved retirement literacy programs.
