Legal precedent on FNPF Act – Court rules mother must be repaid $21K from son’s FNPF after caring for him

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The High Court in Suva has ruled that retired Nakasi resident be paid $21,517.42 from her late son’s Fiji National Provident Fund (FNPF) savings to reimburse funeral and medical expenses she incurred before his death.

In his October 17 ruling, Acting Puisne Judge Penijamini Lomaloma said the mother had proven that she personally paid for her son’s medical care and funeral after he separated from his wife more than two years before his death.

“The evidence shows the plaintiff cared for her sick son for over two years and spent her own retirement savings on his hospital treatment and funeral rites,” Justice Lomaloma said.

“Justice requires that she be refunded the moneys she spent on medical expenses and funeral costs for her late son from the FNPF funds he accumulated in his life.”

The Court heard that the son, who passed away in January 2024, was a member of the FNPF but had not updated his nomination after getting married.  The FNPF subsequently transferred his total balance of $42,264.20, including $8,500 in death benefits, to the High Court as required under the FNPF Act.

In his ruling, Justice Lomaloma said section 57 of the FNPF Act gives the High Court discretion to decide how to distribute funds when no valid nomination exists. He found that while FNPF money forms part of the deceased’s estate, the mother’s alternative claim for reimbursement was justified.

He approved payments of $4,278.42 for hospitalisation at Oceania Hospital, $3,500 for other medical costs and home care, $1,739 for morgue, cremation, and ash and $12,000 for funeral rituals.

“The balance of the funds shall remain in the Chief Registrar’s Trust Account as part of the estate of the deceased,” Justice Lomaloma ordered.

He also noted that the FNPF death benefit of $8,500 is meant to cover funeral expenses, adding that cultural considerations and traditional rituals must be acknowledged when assessing reasonable costs.

“There is no logic in allowing a member to withdraw FNPF savings for a parent’s medical or funeral expenses while alive, yet deny a refund to a mother who used her own money to care for her dying son,” the judge stated.