Fiji's superannuation fund balances affected by low wages, unemployment

SUVA, March 19 (Xinhua) -- The Fiji National Provident Fund (FNPF) has said that low wages are one reason for low member account balances.

The superannuation fund has almost 430,000 registered members, out of which about 57,000 are over 50-years-old and have balances below 10,000 Fijian dollars (about 4,700 U.S. dollars).

About 64,000 members now have zero balances.

FNPF Chief Executive Jaoji Koroi said Tuesday that the majority of Fijians earn low wages, or are in irregular employment or have taken earlier withdrawals.

FNPF has 236,058 members who actively contribute throughout the year while over 4,000 are voluntary members. FNPF opened membership to Fijian children as young as six years old from February 2019.

The Minor Voluntary Scheme allows children to earn compounded interest on their savings; enabling them to accumulate and grow these at a faster rate with zero fees and no taxes.

Koroi said the decision to extend membership to children is part of the Fund's plan to extend its social security agenda to allow Fijians who are excluded from the compulsory savings scheme to also save for retirement, especially the younger generation.

The age eligibility for membership into the Voluntary Scheme has been reduced from 16 years to six years and allows Fiji Citizens up to 54 years old to sign up for this scheme.

Anyone who is not employed by a registered employer can also join as a voluntary member. This means that market vendors, taxi drivers, domestic workers, farmers, operators of SMEs (Small and Medium Enterprises) as well as students are potential voluntary members.