FNPF

FNPF increases rates for term annuity retirement product

The Fiji National Provident Fund today announced that it has reviewed and increased the rates of its Term Annuity retirement product. The new rates are based on recent Reserve Bank of Fiji yield curve reports, indicating that the current investment market allows improved rates. The Term Annuity product is offered as retirement choice for retiring FNPF members. Members […]

Verleshwar Singh

September 8, 2016 5:08 pm

The Fiji National Provident Fund today announced that it has reviewed and increased the rates of its Term Annuity retirement product.

The new rates are based on recent Reserve Bank of Fiji yield curve reports, indicating that the current investment market allows improved rates. The Term Annuity product is offered as retirement choice for retiring FNPF members.

Members who purchase the product can opt for a 5, 10 and 15-year pension term. They will receive a monthly pension payment over the period selected. The new rates have taken into account investment returns expected to be obtained over the selected term, based on the current market conditions.

The newly approved term annuity rates are as follows:

5 year – 21.7%
10 year – 12.4%
15 year – 9.6%

FNPF Chief Operating Officer, Mr Jaoji Koroi said the reviewed rates ensure that retirees who purchase the Term Annuity product are fairly charged for the guaranteed payments they are acquiring.

“As an investment product, term annuity rates may change and to be consistent with the market movement. The new rates will only apply to new retirees who opt to take up the term annuity product from the date the rates are implemented. Current annuitants who had previously purchased this product will not be affected by these changes.”

Mr Koroi added that changes in rates will be made under regulations to ensure that no cross subsidy to or from other funds or business of the FNPF should occur.

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