Editorial comment – FNPF member contributions

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THE revelation that the Fiji National Provident Fund is owed $9.05 million in member contributions is interesting.

This, we are told, includes $4.75m from previous financial years and $4.3m for the period July, 2018 – December, 2018. This was revealed by FNPF chief executive officer Jaoji Koroi yesterday.

He said the fund was able to recover part of the debt through investigation and compliance checks, which also resulted in some organisations clearing their dues from past years.

He said 499 employers used the penalty waiver period from September to December 2018 to clear $3.25m in contribution debt to the FNPF.

During the penalty waiver period, the Fund said 499 out of 1594 employers either fully paid or partially paid their debts. The waiver expired on December 31, 2018.

The remaining 1095 employers would be subject to a penalty of $100 per employee per month as stipulated under Section 40 of the FNPF Act 2011.

While the waiver had been used to assist in the recovery of member contributions, he reminded employers of their obligations under the FNPF Act 2011.

Employers have also been reminded that the Fund also had authority to impose travel restrictions on defaulting employers and it could recover money from other third parties, as well and advised that the Fund would be publishing names of employers who were regularly in breach of the Act.

Employees, Mr Koroi said, or members were equally responsible for the payment of their contributions and must consistently check their pay slips and FNPF accounts to ensure their contributions were paid on time. The revelation will no doubt raise some concern and interest. Sceptics may insist it raises a number of questions and issues as well.

A line of thought would suggest businesses are expected to be upfront with FNPF contributions. It is good to know that 499 employers used the penalty waiver period from September to December 2018 to clear $3.25m in contribution debt to the FNPF.

The figure is high.

It is a concern though that the remaining 1095 employers would be subject to a penalty of $100 per employee per month.

As raised above, this is stipulated under Section 40 of the FNPF Act 2011.

As Mr Koroi pointed out though, employers are obliged under the FNPF Act 2011 to make this contribution.

This certainly is an issue that must be addressed effectively and quickly.

It is encouraging that processes are in place though to address this.

That is a positive step forward.

The challenge though is how we can ensure stakeholders are taking appropriate action in the first place.

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