It is a moral obligation for the Society to take care of the aged and infirm. IN Australia & NZ the tax payer pays the dole. A clear subsidy.

FNPF was set up to ensure care of the people in their twilight years.

2.      FNPF says that it set the 55 as the age of retirement as the life expectancy in 1965 was 60.

Ok, then they should have adjusted the retirement age as done elsewhere. They did not do it and can still do so.

See the table below:

FIJI LIFE EXPECTANCY HISTORY

World Rank

Male Female All

M

F

All

1960 54.0 58.2 56.0

75

74

74

1970 58.0 62.2 60.0

81

81

82

1980 62.0 66.2 64.0

79

84

84

1990 64.6 68.8 66.7

89

99

97

2000 65.4 69.7 67.5

103

111

108

2009 68.2 73.4 70.7

105

106

107

The failure to take action in time was not members’ fault. The present retirement age should be in order of 60-65.

3.      Fixed Pension & Inflation:

Since 1999, when the 25% was cut off to finally 15%, the inflation has accumulated to 70%.

See table below:

Inflation Rates Accumulated.

Year                   Rate                  Accumulation

1998                           5.7                                105.7

1999                           2.0                                107.814

2000                           1.1                                108.999

2001                           4.3                                113.68

2002                           0.8                                114.596

2003                           4.2                                119.409

2004                           2.8                                122.75

2005                           2.4                                125.699

2006                           2.5                                128.84

2007                           4.8                                135.0259

2008                           7.7                                145.422

2009                           3.7                                150.8

2010                           5.5                                159.097

2011                           7.0 (EST)                     170.23                          

 170-100 (start) = 70%.

As a result our buying power has actually already reduced to 30%. In some countries dole is subject to adjustment by inflation rate.

4.      FNPF needs to re-look itself. What is the ratio between staff to Membership? Compare this with say Singapore on whose model Fiji system works. It needs to improve return on investment and reduce its overhead.

5.      Finally, they need also to raise the contributions made by members. This will ensure that the members when they retire at lower rate in future, they can sustain themselves. In addition, they should also ensure that members do not take away their retirement benefits now.

Grey Power commentary
Thanks Mohan for this contribution. One of the things pensioners never did with respect to the FNPF benefits is calculate just how much we lost in inflation over the years since we took our pensions. Other countries such as the USA have a COLA adjustment granted annually to our pensions. If the FNPF wants to review the Act we should make submissions that our pensions from henceforth be COLA adjusted.

 Grey Power.