Suddenly there’s a seven-year crisis

FNPF consultants Shauna Tomkins and the guitar-playing Geoff Rashbrooke (The Windy City Strugglers) have been engaged in a propaganda blitz aimed at justifying the actions of the Fund in reducing pensions.

Those of us who attended the May symposium that began the FNPF’s “consultation” on pensions, remember Ms Tomkins as a patronising, voluble and aggressive, smarty pants. She talked down to the locals and didn’t seem to be interested in answering too many questions.

 In a torrent of comment with Mr Rashbrooke in the Fiji Times recently, Ms Tomkins did nothing to repair the FNPF’s credibility.

In fact she succeeded in raising the question that will haunt the FNPF from now on: Where lies the truth?

Ms Tomkins and Mr Rashbrooke are obviously eager to please their client, the FNPF. So they won’t give an inch to the pensioner victims, most of whom are middle and working class.  Let them whistle. If they can’t afford bread, let them eat cake.

In their propaganda deluge, Ms Tomkins and Mr Rashbrooke have aligned themselves with the FNPF’s preferred method of communication: confuse the pensioners and the public; lay on the inconsistencies and discrepancies, and contemptuously push to one side the anguish felt by many of those being oppressed and discriminated against.  People don’t like change.  Tough, they’ll just have to get used to it.

Greybeard invites you now to consider just one of the inconsistencies that marked the recent utterances of Ms Tomkins and Mr Rashbrooke.

We are all acutely aware that the FNPF, from the start of its “consultations”, stressed that it could continue till 2050 or 2055 as it was presently structured.  Why then, we asked, was there such a mad rush to chop our pensions in advance? There has never been an answer to that.

But now Ms Tomkins and Mr Rashbrooke have reworked the math. They have thrown away without explanation the 40 or 45-year timeframe for the FNPF’s bankruptcy.

Their new claim is that the FNPF could be insolvent within seven years! In one fell swoop, 2050-2055 has become 2018!

So the FNPF, Ms Tomkins and Mr Rashbrooke got it wrong earlier. They were way out in their calculations. How very strange that the seven-year threat has only just surfaced. After all these months, it has appeared from nowhere. 

Is it any wonder that those who have been picked out for special treatment no longer believe what the FNPF says?

Where does the truth lie?

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Racism

A customer asked, “In what aisle could I find the Guinness?”   
The shop assistant asks, “Are you Irish?”
The guy, clearly offended, says, “Yes I am.  But let me ask you something,
If I had asked for Italian sausage, would you ask me if I was Italian?
Or if I had asked for German Bratwurst, would you ask me if I was German?
Or if I asked for a kosher hot dog would you ask me if I was Jewish?
Or if I had asked for a Taco, would you ask if I was Mexican?
Or if I asked for Russian Vodka, would you ask if I was Russian?”

The shop assistant says, “No, I probably wouldn’t.”

The guy says, “Well then, because I asked for Guinness, why did you ask me if I’m Irish?”

The clerk replied, Because you are in Bunnings

AN OPEN LETTER TO GERMAN CHANCELLOR ANGELA MERKEL By Frederick Forsyth

PERMIT me to begin this letter with a brief description of my knowledge of, and affection for, your country. 

I first came to Germany as a boy student aged 13 in 1952, two years before you were born. After three extended vacations with German families who spoke no English I found at the age of 16 and to my pleasure that I could pass for German among Germans.

In my 20s I was posted as a foreign correspondent to East Germany in 1963, when you would have been a schoolgirl just north of East Berlin where I lived.

I know Germany, Frau Merkel, from the alleys of Hamburg to the spires of Dresden, from the Rhine to the Oder, from the bleak Baltic coast to the snows of the Bavarian Alps. I say this only to show you that I am neither ignoramus nor enemy.

I also had occasion in those years to visit the many thousands of my countrymen who held the line of the Elbe against 50,000 Soviet main battle tanks and thus kept Germany free to recover, modernise and prosper at no defence cost to herself.

And from inside the Cold War I saw our decades of effort to defeat the Soviet empire and set your East Germany free.

I was therefore disappointed last Friday to see you take the part of a small and vindictive Frenchman in what can only be seen as a targeted attack on the land of my fathers.

We both know that every country has at least one aspect of its society or economy that is so crucial, so vital that it simply cannot be conceded. 
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Fiji Sun: Fiji First with Seniors Plan.

We say: Peter Lomas,  get your blinkers off– or go back to Journalism School for a refresher! Also we recommend 1 tablespoon of imodium daily for several months. 

Fiji Sun: Fiji First with Seniors Plan.  (GreyPower substitute title: “Fiji First with Pension Cuts- Plan to Kill Seniors off”)

Fiji yesterday became the first country in the Pacific to launch a policy to safeguard the elderly  (GP: safeguard the elderly from getting FNPF pensions)

The 4 year plan to foster development in the care and welfare of senior citizens was launched in Suva (GP: in case they live longer than anticipated by the FNPF and Government)

The Fiji National Policy on Ageing was launched by UNFPA subregional director Dirk Jena. (GP: This UN agency clearly does not know the first thing about breaches of the rights of elderly persons by FNPF and Government, particularly their right to be heard in a court of law without interference of the judiciary by the executive- someone should tell HE Ban Ki Moon about the UNFPA’s ignorance in the Pacific and support for human rights violations in Fiji)

Speaking at the launch Mr Jena said the policy “truly is a pioneering practical homegrown document”  

“It is a  forward looking framework of preventative measures”  Mr Jena said.   (GP: Mr Jena will enjoy his own healthy UN retirement plan when the time comes, so what does he care what happens to the elderly pensioners in Fiji- this comment is a good example of telescopic philanthropy of the UN senior executives) 

The 4 main visions of the policy include:
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The Sick Joke is on The Pensioners

What on earth are Fiji’s current FNPF pensioners to make of the inauguration of The Fiji National Policy on Ageing which was launched on the 19th December by the United Nations Population Fund Pacific sub-regional director Mr Dirk Jena? 

What are we to make of the reports on the launch in yesterday’s Sun and Fiji Times? Bizarre comes to mind and of course Ironic – but more to the point would be Sick Joke because 2012 has been declared the Year of the Ageing, and to commemorate this the government has decreed that many pensioners will be pushed into poverty.

What irony – we are the first country in the Pacific to launch a policy to safeguard the elderly while at the same time planning to cut the pensions of most of our current pensioners as a Year of the Ageing joke in March 2012. 

The 4 main ‘visions’ of the policy include ‘Recognition of the contribution of older people to the social, cultural, economic and political sectors of society’. It is a pity that the board of the FNPF does not agree.
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Simple Question for Tompkins and Rashbrooke

The simple question that Dr Shaista Shameem, counsel for Burness v FNPF and the AG has for Tompkins and Rashbrooke, upon reading the Fiji Times is this:

If, as Tompkins and Rashbrooke say, (1) FNPF pensions were ‘not contracts’ and (2) the FNPF pensioners were ‘winning at someone else’s expense‘ , why did the Government and FNPF (joined at the hip), and taking advice from the Solicitor General who is a party to the action, not allow the High Court to decide these legal questions? 

Surely these legal issues, since they have been challenged in the Burness case, can only be decided by a court of law? Why was there a need for FNPF and the Government to interfere with the independence of the judiciary by including section 11 (6) in Decree No 51? 

Dr Shameem is certain that neither Tomkins nor Rashbrooke (nor indeed the Solicitor General Christopher Pryde) would be allowed to get away with this type of blatant abuse of power in their own countries, namely Australia and New Zealand. Especially where a radical alternation in pension rights has been implemented without the due process of parliament. The NZ Law Society has already commented on Decree No 51 as purposely interfering with the power of a judge to decide a case already in the High Court. 

She says Tompkins, Rashbrooke and Pryde’s actions in discriminating against FNPF pensioners represent the worst form of neo-colonialism and export of neo-liberal market ideology to a Pacific Island nation.  Due to its political naiveté the Fiji Government has no idea what this new pension policy will mean for the people of Fiji in the long run. Aisake Taito’s lack of economic acumen is apparent every time he makes a press statement. 

Dr Shameem says the people of Fiji deserve better than carpetbaggers from Australia and New Zealand deciding their fate and they certainly deserve a lot better than Taito’s tight-shirted ‘attitude’ problem. 

Opinions of Reality

Members of the public at the FNPF public consultation at Rishikul Secondary School. Picture: ATU RASEA (The expressions of hopelessness and distrust on their faces says it all)

* Disclaimer: The following opinions expressed are those of the authors’ Shauna Tomkins and Geoff Rashbrooke  and are not intended as legal or financial advice.

Statements continue to be made about the FNPF reforms that are simply not true.

Predictably, the termination of the pension scheme has been met with anger and cynicism by those affected who even question the need for reforms in the first place. Many pensioners understand that the new life annuity arrangements are offered at a much lower conversion rate and alternative investments will not generate the returns enjoyed under the old life annuities arrangements. The reason is obvious ù there are no investments available to support pensions at a rate of 25 per cent or even 15 per cent that are of an acceptable risk for individuals or FNPF for that matter. There never were.

Prior FNPF boards, management and successive governments ù elected and otherwise ù failed to implement a proper fix to the problem. This is despite 20 years of warnings by the International Labor Organisation, World Bank, IMF, actuaries and special advisors. The 1999 changes did little to solve the problem. Ironically, subsequent drives to encourage taking the life pension at entitlement only made the problem worse.

Unfortunately, those pensioners most affected by the termination/refund plan will not be satisfied with anything other than the status quo ù no change. While an easy solution may have been to change only conversion rates on future pensions and leave the past pensions alone, to do so continues to discriminate against working members in favour of pensioners and compounds past mistakes. Status quo would mean that members continue to pay for the next 30 years. It means a 25yo in the work force today retires with potentially 30 per cent less because earnings must be redirected to pay these pensions.

The self-interest is understandable and so it is no surprise that mis-statements continue to be made by those who believe that they have the most to lose. The silent majority who will benefit from the changes remains just that ù silent.

Here are the 10 biggest myths about the FNPF reforms.
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Taito, where is the evidence?, copies of factual reports please.

What’s up with the FNPF now? Front page plus page 3 in the Fiji Times on Wednesday 14th, front page and page 3 again today, Thursday 15th. An we now have one Geoff Rashbrooke in the mix in addition to Shauna Tomkins and Stephen Mason. 

1: In Taito-speak we are told that the World Bank, the IMF and the Reserve Bank of Fiji ‘support’ the FNPF reforms. Unfortunately for the FNPF the Fiji Times reporter missed the underlying double-speak of the Taito-babble. 

2: On page one today, Ms Tomkins and Mr Rashbrooke are quoted thus…The reforms are comprehensive and address structure, solvency, refocus on retirement, prudential regulation, governance, greater independence from political interference and sound risk management. The reforms are robust and aim to avoid a repeat of current problems. 

This quote does not mention the arbitrary cutting of current pensions. It is concerned solely with the restructuring of the administration of the FNPF. It is obvious that ‘refocus on retirement’ refers to future pensioners. ‘Refocus on retirement’ cannot be interpreted to mean ‘focus on cutting current pensions. 

The IMF, World Bank and Reserve Bank of Fiji silence is equal to a screaming banshee. Where, in black and white, has one of these institutions declared that the arbitrary cutting of private contributory pensions is advisable? Nowhere. They haven’t and they won’t because the result would be uproar. 

Meanwhile, Tomkins, Rashbrooke and Mason can only stand aside while their words are mangled and misreported. Turn to page 3 to the last paragraph of today’s report. It states…”Pensioners are not being victimised although clearly some individuals will feel a greater financial impact than others”. This is reported as if a direct quote from Tomkins, Rashbrooke and Mason, and that is just too hard to believe they said that. 

Here’s more Taito-prattle. He says…Whilst we can only learn from our past, we should not dwell on it. Well, here’s a bit of Greypower logic for Taito – unless you dwell on your past you’ll learn nothing from it. Pensioners right now are certainly focussed on their past, many of them kicking themselves for not grabbing the lump sum and running with it. They are caught up in thoughts of ‘if only’.  

And he urges those ‘who might be affected to be selfless’. Taito-blab! It is not the pensioners who will need to be selfless – it is their children who will have to support them! Grandchildren? What should have gone towards their education and treats will now be spent on their grandparents; grandparents who are rightfully angry, resentful, and humiliated. 

All this Taito-gibbering in the Fiji Times does nothing but confirm that the FNPF board knows that it is WRONG – and several current pensioners, professional money-men, have the figures to prove that. So please, Taito and board, cut the crap? Don’t tell us again that pensions are being cut world-wide – we know they are – they are government pensions, not private pensions held in trust by a fund owned by its members. Stop telling us that you are being ‘fair to all’ because you are patently NOT. Stop telling us that we were enjoying ‘overly generous’ pensions as if you were doling out favours. 

Until the board goes public with concrete evidence that the IMF, the World Bank, the Reserve Bank of Fiji, and named ‘actuaries and legal experts’ did indeed advise the arbitrary cutting of current pensions, pensioners will not believe one word of Taito’s gibberish no matter how much he witters on.

Still No Sign of Dave

Still no sign of Fast Talking High Flying Dave, but Pacific Sun has been using Air Pacific’s Boeing 737 aircraft to service the Nadi – Suva- Nadi route to transport passengers from Nadi to Nausori and back.

The question is what percentage of seats are filled each way, and how much money are we losing, by not using the ATR 42 or the Convair