The Fiji National Provident has reiterated that they are not a bank but a savings scheme for retirement and have thus introduced measures to meet their members social obligations and also ensure that people are financially secure during retirement.

Chief executive officer, Aisake Taito revealed that since 1995, there has been a huge deficit in contribution compared to members withdrawals.

In a press statement, the Fund revealed that there was an average of $350 million dollars withdrawn between 2009 to date, compared to less than $300 million in contributions.

As a result, the Fund has announced measures such as the processing fee for partial withdrawal will be reduced by fifty percent which will mean that members will no longer have to pay $20 but $10 which will all come into effect on the effective from the first of September 2010.

Taito said for partial withdrawals, this will cover only education, medical and housing assistance. Another reform is the extension of cover for medical benefits to a member's brothers and sisters, as in previous practices it would only cover the members spouse or immediate family members, as well as the review of housing assistance to ensure that it is inclusive of the less affluent in society.

Other changes that will come into effect on September 1st this year is the removal of the ceiling of $2,000 for local education per student per semester.

The Fund also revealed that they will also be allowing their members options to repay the amount they have withdrawn under partial schemes to allow them to have a higher balance on retirement.

Another change made by the Fund was to the Special Death Benefit, where a relative of the deceased who is a member, will now be able to withdraw $2,000 from the deceased's account.

In past practice, the onus would be on the relative to withdraw from their own account to cover for the funeral of the deceased.

The special Death Benefit comes into force from the first of January next year.

Taito revealed that this will benefit members as well as boost their savings, adding that this will make their lives financially secure.


Story by: Paradise Tabucala