Govt commends FNPF board after declaring 6% interest

The government has commended the Fiji National Provident Fund board after they declared an interest of 6% for the financial year ending 30th June, 2015, compared with 5.75% last year.

This equates to an estimated $224.8 million being distributed to FNPF members’ accounts tomorrow.

Attorney General and Minister for Finance Aiyaz Sayed-Khaiyum says the reforms in FNPF they had undertaken is paying off.

Sayed-Khaiyum also acknowledged Prime Minister Voreqe Bainimarama who was Minister for Finance when these reforms took place.

Meanwhile, FNPF Board Chairman Ajith Kodagoda says 2015 has been remarkable and one of the best years for the Fund in over a decade.

In a first for the Fund, this year’s interest is paid under the new interest crediting formula that was adopted in November last year. The formula ensures members get interest credited on their balance at the end of the financial year.

In the past, interest was paid on the previous year’s closing balance

Kodagoda says the 6% interest, which is tax free, closely matches the income earned from investment this financial year, after allowance for all costs of operating the FNPF.