In the Republic of Fiji 6 per cent of the total population is over the age of 65 and by 2025 this group will represent 10 per cent of the population. In 2011 the Government of Fiji adopted a reform of the mandatory pension insurance provided by the Fiji National Provident Fund (FNPF) in order to promote income security among older persons. The FNPF Decree was promulgated in November 2011, introducing major structural changes to the Fiji National Provident Fund, administered by the Board of the Fund. Pensions and annuities are provided by the Retirement Income Fund (RIF), a separate fund with the FNPF established to provide life pensions and term annuities.
The FNPF is mandatory for all those between 15 and 55 years of age in the formal sector that have been employed for at least 12 days. Expatriate employees and employers are also included in the scheme. The employer and the employee each contribute 8 per cent of the salary to the workers’ individual account. The retirement age is set at 55 years for both men and women. Members are eligible to withdraw their funds once they reach 55 years of age, with the option of taking full pension, part pension and part lump sum payments. The minimum pension is set at FJD 100, or USD 53, per month. In 2011, 7,686 applications were approved for lump sum payment totaling FJD 120.7 million, or an average of approximately USD 8,400 per person. As of 2016, the FNPF had 406,065 contributors and 11,509 pensioners constituting 21 per cent of all older persons aged 65 and above in Fiji. In 2014 a total of 22,814 applications were filed and approved for lump sum payments whereas the previous year had 19,303 applications, with a total of FJD 312 million set aside for payments to approved applicants. The FNPF also provides a voluntary pension scheme for students, self-employed workers and domestic workers aged 15 years of age and above, however their contributions are limited to FJD 7, or USD 4, per month. Foreign workers registered as FNPF members are eligible to the same benefits. The Government of Fiji also operates an additional pension Social Pension Scheme, which provides a monthly payment of USD 50 per month, for all those over the age of 68 who do not receive the FNPF.
Fiji’s pension system has undergone major structural changes since the establishment of the FNPF in 1966 under the FNPF Act. Over the years the Act has been amended to address the changing needs of older persons with the introduction of the pension scheme in 1975 and the review of the scheme in 1999 and 2011. Some challenge still remains in meeting the needs of migrant workers; however, investments in income security, such as Fiji’s pension system, are essential steps toward creating a social protection floor to ensure that all in need have access to basic income security.
Further Reading:
Government of Fiji (2012). Annual Report 2012 - Fiji National Provident Fund. Accessed from http://www.fnpf.com.fj/images/forms/reports/FNPF_AR_2012.pdf.pdf on 22 August 2013.