Cogito, ergo sum. I think, therefore I am. (René Descartes, mathematician and philosopher,1599-1650)

Saturday 4 June 2011

Why Review the FNPF Act and Pension Scheme?

Official release.
FNPF is undergoing reforms that are in line with its corporate vision to secure members’ future by ensuring sustainable returns and delivery of excellent services. The Fund has adopted an integrated and holistic approach to these reforms that takes into account all aspect of its business including business processes and designs, investment, IT infrastructure and most importantly, its people.
A key component of the reforms is the review of the FNPF Act and the Pension Scheme to ensure the delivery of a sustainable, transparent and fair retirement

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4 comments:

The Issue that will RUN & RUN said...

No doubt there is a need for review. But....it must include a review of the responsibilities of GOVERNMENT (capitals) for the pension provision of its Senior Citizens. When legislation has permitted since initiation of no competition, then it stands to reason that Government is fully responsible for shortfalls and ill-advised investment decisions. It is incumbent upon any Fiji Government to ensure now (and in the past?) that bad decisions are "made good", staff dismissed with evidence of any bad faith, and those who are incompetent and corrupt charged and sent to the Courts. This is a fundamental issue of Natural Justice. The matter will "not go away" - it is the Hot Potato of the hour and if anyone were permitted to be in politics to milk it, it would RUN AND RUN.

Anonymous said...

What Run said hits the nail on the head. After all, the FNPF is guaranteed by the Government. So it stands to reason that should any shortfall arise in the future, this shortfall is guaranteed by the govt..short of this is a sovereign debt default.. !!! Wow
world topic

pasifika said...

A review must include full disclosure of all monies borrowed by whom and not repaid to the FNPF since its inception and whether unpaid loans can be recovered.Explanation should also be given on why the original percentage return to members was set at the high of 25% when future population growth and future longevity should have been in the mix of factors to be considered.Members of the original board and staff should be held accountable.

The impertinence of Compulsory Understanding said...

There is huge disquiet and potential for dissatisfaction and anger on the entire FNPF issue. It is simply not good enough to tell a roomful of pensioners and contributors (employers and employees) that:

"You MUST understand".

Oh yes? Well, actually, we believe you the FNPF MUST UNDERSTAND how abysmally you have all performed over forty-four years. The 6% your fund was earning on an overall declared annual rate of interest was being eroded by not only runaway inflation but also by stupid and incomprehensible decisions not to invest in economies and overseas institutions far outperforming Fiji's. Then 2008 Global Downturn hit. Were you at all prepared? Well NO because three years before Natadola and Momi were running amok and the Board did not even take a Due Diligence approach. At Natadola they were in bed with a Felon Frenchman and some highly debatable board members. Momi: more of the same. Who were the Chairpersons of these two Pie in the Sky developments? Who were the CEOs? Which companies both overseas and local were doing the donkey work and not getting paid? Did anyone give a toss?

So many things 'We MUST understand'. Oh no, not really. This was always a disaster ready to take place: look at the FNPF Act - now who drafted that?