Why has the Fund introduced changes to the pension scheme?
Changes to the scheme have been absolutely necessary to ensure that the Fund remains sustainable in the long-term; and our current and future pensioners and members have the pension they deserve in retirement.
In its current form, the contributions from pensioners on their retirement, as well as the interest gained from investments, was far less than what we were then giving out to our pensioners each month. This is why we had to change. The new scheme is fair for everyone and the best thing for Fiji as a nation.

What are the key reforms?

• The new FNPF Decree will become effective on 1 March, 2012, with a transitional decree to facilitate the transition from the current Act to the new decree.
• A new age-based, actuarially sound pension rate will be implemented on 1 March, 2012.
• Current pensioners will be given the option to take a lump sum refund of the principal amount they had converted to pension, or to choose one of FNPF’s new pension options - Life Pension or Term Annuity.
• If a Life Pension is chosen by one of FNPF’s current pensioners, they will also have access to a top-up option that ensures additional support in retirement.

What is the difference between a Life Pension and Term Annuity?
A Life pension is a regular monthly payment paid out to the pensioner until he/she dies.
It can be a single or joint pension. Different rates are applied for single and joint.
A Term Annuity is a regular monthly payment for a fixed term of 5, 10 or 15 years. Different rates apply for different terms.
Current pensioners who convert their full lump sum return to a Life Pension will also receive a top-up.

How will the top-up work?
The top-up will be applied to those who choose to apply all their refund for a life pension under the following situations:

• Group A: Pensioners who receive a monthly pension of below $100 will be brought up to receive $100 a month under the new rates. Some of these pensioners currently receive as low as $5 a month.
• Group B: Pensioners whose income is between $100 to $300 per month will have their pension income protected and will continue to receive the same amount as they do currently.
• Group C: Those who receive over $300 per month will be offered the best of two options – that is to choose a new pension of $300 per month or a top-up of 25 per cent of their refund capped at $10,000 to be applied on the purchase new life pension.

Why have the rates reduced for the Life Pension?
Changes to the scheme have been absolutely necessary to ensure that the Fund remains sustainable in the long-term; and our current and future pensioners and members have the pension they deserve in retirement. For many years, FNPF has been providing pension on an unsustainable basis.

How long do I have to make my decision?
Our current pensioners must speak to a Pension Counselor and make their decision by February 29, 2012.

Will the new FNPF option I choose become effective immediately?
No. All new options will come into effect on March 1, 2012. All pensions will remain the same until the changeover date.

What happens if I am due to become a Pensioner in the transition period?
Any member that becomes a pensioner during the transition period will be part of the current scheme. They will then also receive a lump sum payment when the new pension scheme becomes effective on March 1, 2012. This lump sum will be the initial amount the member converted to pension, minus the pension that has already been received since they became a pensioner. This group will not be eligible for the top-up.

For example, if David Sigavou became a pensioner on January 1, 2012 with $50,000, he will receive his monthly pension at the rate of 15%. On March 1 2012, David will be provided with a lump sum that is $50,000 minus the payments he has received since January 1, 2012.

As a pensioner, what do I have to do?
All pensioners around the country will need to see a personal FNPF Pension Counselor, to verify their account and access their refund. These Counselors will be available at any FNPF Agency or Branch. When you go to visit a Counselor, please bring the following documents:

• FNPF Pension Identification Card or FNPF Membership Card
• In the absence of an FNPF ID, a passport or drivers license
• Birth Certificate
• Marriage Certificate (female pensioners who changed their names after marriage)
• Death Certificate (only for pensioners who qualified for the scheme after the death of their spouse through a joint pension option.

Why should I choose to stay with FNPF?
Unlike other investment options available to Fiji’s pensioners, FNPF provides tax free returns, a capital guarantee, minimal account management costs and most importantly, the top-up policy.