FNPF announces new retirement product

The motion, moved by AD Patel, led to the establishment of the Fiji National Provident Fund when on May 27 1966, he tabled a Bill in the Legislative Council which was passed four days later on May 31 1966. Picture: ELIKI NUKUTABU

The Fiji National Provident Fund has announced the upcoming launch of a new retirement product that will offer members flexibility and earn an interest.

Chief executive officer Viliame Vodonaivalu said the new product, called the DrawDown Account (DDA) will allow members to receive a monthly income, access withdrawal and earn interest on their balances.

“Our pensioners have often highlighted the need for our retirement products to be a bit more flexible, to allow them access to their funds, when the need arises,” said Mr Vodonaivalu.

“The DDA offers members and nominees that level of access while they receive a monthly income and their balance continues to earn interest. There are no limits to the amount that a DDA holder can access through partial or early withdrawal; however, it must be within their DDA balance.”

According to a statement by the FNPF those who opt for the DDA, can also fully withdraw their savings 12 months after first investing in the DDA.

Those who opt into the DDA, can have more than one DDA account, however, once they fully withdraw their funds before their payment term ends, they cannot use the same funds to purchase any other FNPF retirement product.

“This product will be available only for members and their nominees who qualify and is not for existing pensioners or annuitants,” said Mr Vodonaivalu.

Other terms and conditions can be found on the FNPF website.

The DrawDown Account product is expected to go live before December 31, 2022.

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