Government will continue to work with the Fiji National Provident Fund (FNPF) to address legacy issues and ensure the FNPF remains a credible retirement pension fund.
Finance Minister Professor Biman Prasad said this while speaking in Parliament this week on the FNPF 2022 annual report review.
He said although FNPF recorded negative contributions in 2022, this was a big improvement from the previous negative net contribution of about $179.5million.
Prof Prasad said this increase was attributed to an increase in the contributions received due to the 2 per cent increase on contribution rates and a decrease in members’ withdrawals.
He said with respect to FNPF’s ability to diversify its investment portfolio – apart from the investments in the hotels and properties, particularly offshore investment – was a means to move away from just relying on Government bonds subscriptions and returns from that.
“The Coalition Government committed to restoring their contributions rates to the normal 18 per cent in 2024 and we have done that accordingly as announced in the last budget,” he said.
“The fund’s investment portfolio was valued at $8.6billion in 2022 and the Return on Investment (ROI) now was 7.4 per cent. This was a significant increase from the 6.1 per cent return in the previous year.”
Prof Prasad said the key investment highlights for 2022 included the completion of the refurbishment and reopening of the Sheraton Resort, the completion and opening of the Nadi Retail Centre, Fiji Airways acquisition and the Ba and Lautoka Hospital through the Public-Private Partnership.
He also informed Parliament that Cabinet had considered the situation with respect to the Public-Private Partnership with Aspen and FNPF.
“Of course, there are several issues there and at some point, when we have dealt with, the Parliament will be informed of that.”
He said FNPF would continue to invest in opportunities that aligned with its long-term objectives, and its portfolio growth must increase.
“It is important that they do that, but also as we move in the future, we need to look at very carefully what was the original intention.”