Members who choose the current 8.7 percent FNPF pension rate will receive that rate for the rest of their lives, with no annual increases or cost-of-living adjustments.<\/p>\n
This was clarified during the Fiji National Provident Fund Annual Member Forum, where questions were raised about whether pension rates could improve next year and whether there should be a\u00a0cost-of-living adjustment for the pension rates every year.<\/p>\n
FNPF General Manager Development and Research Millie Low says\u00a0pension rates are actuarially tested and once selected, the rate remains fixed for the duration of the pensioner\u2019s lifetime.<\/p>\n
She says there are no cost-of-living or inflationary adjustments applied to pension conversion rates.<\/p>\n
FNPF Chief Investment Officer Naibuke Saune\u00a0explains that the pension portfolio is primarily backed by government bonds, which is low risk and stable. <\/p>\n
He says the pension portfolio is very risk-averse, adding that at the pension stage, there is no room for risk-taking activity.<\/p>\n
He says a typical 10-year or 20-year government bond is currently yielding about 6 percent, meaning if someone purchases a government bond, they would receive around a 6 percent return.<\/p>\n
Saune\u00a0says\u00a0the bonds backing pensions were purchased previously and are locked in for periods ranging from 10 to 30 years, with fixed coupon payments made over time.<\/p>\n","protected":false},"excerpt":{"rendered":"Members who choose the current 8.7 percent FNPF pension rate will receive that rate for the rest of…\n","protected":false},"author":2,"featured_media":280193,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,157026,111,139,69,244,245],"class_list":{"0":"post-280192","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-fnpf-video","11":"tag-new-zealand","12":"tag-newzealand","13":"tag-nz","14":"tag-personal-finance","15":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/280192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=280192"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/280192\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/280193"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=280192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=280192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=280192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}