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FNPF call

Elenoa Baselala
Thursday, May 24, 2012

AT least 900 pensioners could see their savings transferred to the Fiji National Provident Fund's (FNPF) general reserve account because they have yet to validate themselves and select a pension option.

Almost four months after the validation deadline, the FNPF yesterday confirmed it was still waiting for those pensioners, who make up at least eight per cent of the fund's 11,000 pensioners.

Fund chief executive officer Aisake Taito has urged those pensioners to validate themselves and choose a pension option immediately.

"Validation is mandatory in the transit process and we have close to 900 pensioners who have yet to validate and choose an option," Mr Taito said.

"It is in the best interest of pensioners who have not validated to come and liaise with us so that they are also able to receive their payment," he said.

He said those funds would be held in the general reserve account and safeguarded until the pensioners were able to validate and choose an option.

The fund is also waiting for about 90 pensioners who have validated themselves but have yet to choose an option.

Under the FNPF Decree, those who have not chosen a pension option by June 1 will be given the "lump sum withdrawal" option and their funds transferred to their bank accounts.

"These pensioners have gone through and completed the validation proper, but they have not submitted the form indicating their pension option," Mr Taito said.

"According to the FNPF Decree, those that do not choose an option by the stated date will be entitled a full lump sum withdrawal," he said.

"This means that effective on June 1, the Fund will by default, transfer all their pensionable funds to their nominated bank accounts," he said.

The fund commenced on the new pension age-based scheme from March 1 but payments to pensioners last month were delayed as the fund faced technical glitches.

Yesterday, it confirmed that the second monthly pension for those that have opted for pension products are being paid out.

"The first group of pensioners have been paid out, with the second group to receive theirs at the end of this month," Mr Taito said.

There were payment delays for the first group of pensioners with the fund citing technical glitches as the reason.