The injustice faced by Fiji’s FNPF pensioners since 2012 remains one of the darkest unresolved financial and moral issues in our nation’s history.
In 2012, the FijiFirst Government, through an unelected and controversially appointed FNPF Board, drastically changed the pension scheme for a specific group of retired pensioners who had legally opted for the 25% life pension arrangement offered by the Fund at the time of their retirement.
These pensioners did not force the scheme upon FNPF. They entered into a lawful agreement with the Fund. The Fund itself promoted and guaranteed these pension arrangements. Members made retirement decisions based on those promises. Many surrendered lump sums and committed their life savings to FNPF because they were assured of guaranteed pension payments for life.
Today, some try to justify the pension cuts by arguing that retirees had already received “more than what they contributed.” That argument is fundamentally flawed, illogical and rather irresponsible!
This was never meant to be an ordinary savings withdrawal account. It was a LIFE ANNUITY arrangement, a pooled pension system based on risk sharing. If a pensioner died shortly after retirement, the remaining balance stayed with the Fund. The member’s family did not continue receiving those payments. In those cases, it was the Fund that benefited.
The understanding was simple; some members would die early, others would live longer and the Fund accepted that actuarial risk in exchange for holding and investing pensioners money. That is how pension systems around the world operate.
What makes this issue even more painful is that these early retirees were among the very people who helped build FNPF into the financial giant it is today. They kept faith in the Fund during its formative years. Their money was invested over decades into the very assets and developments that helped grow FNPF into a fund now reportedly worth over $12 billion. Yet the same pensioners were later told they were suddenly a “burden” on the Fund.
The justification used in 2012 was “actuarial sustainability.” The Board argued that continuing to pay the agreed pension rates would threaten the future stability of FNPF. But this raises a very important questions, in a country where FNPF membership is compulsory and regulated by the State, should the Government not ultimately stand behind the sustainability of the national provident fund?
Around the world, governments routinely support or guarantee national pension systems because retirement security is not merely a commercial investment issue; it is a social obligation.
Instead, Fiji chose to reduce the pensions of elderly retirees AFTER they had already retired and AFTER contracts had already been entered into. Even more disturbing is that while pensioners endured reduced incomes for more than a decade, FNPF in recent years has declared annual interest rates of 8% to 9% to existing members and now reports record financial strength.
This naturally leaves many asking, if the Fund is financially healthy today, why were pensioners made to suffer for so long without full justice or restoration?
Another major concern is the constitutional protection surrounding the 2012 reforms. The decrees and amendments introduced during that period were later entrenched under the 2013 Constitution, making legal challenges extremely difficult. Many pensioners believe they were denied proper access to judicial review and constitutional remedy. The current Board and Management can do nothing as it is now LAW imposed by one man!
This is why the issue refuses to disappear.
This is not just about money, it is about trust, it is about contractual fairness and it is about dignity. Most importantly it is about how a nation treats its elderly citizens after they have spent their lives contributing to the country.
Every year, more affected pensioners pass away without seeing justice. Many die believing they were betrayed by both the Fund and the State. The Fiji Government through Hon Prime Minister Sitiveni Rabuka must address this matter with compassion in finally addressing this issue properly. A humane and honourable resolution is long overdue.
A country cannot build a just future while ignoring the unresolved pain of its elderly citizens.
The 2012 FNPF Pensioners’ Robbery: the way forward.
what the 2025 FNPF Annual Report conveniently ignores The 2012 Pensioners have been crying for justice for thirteen long years since the Bainimarama Government in 2012 revoked their pension contracts (signed on Form 9NOP) which had been offered by FNPF itself. Some were forced to take reduced pensions, and some took lumps sums under duress and their pensions stopped. Some 1400 are still alive today with some passing away every week without seeing justice done. Two years ago, the pensioners were heartened when the former Minister of Finance (Professor Biman Prasad) announced at his first Budget that the revoking of the 2012 Pensioners’ contracts was illegal. He used taxpayers’ funds (not FNPF’s) to restore the pensions of those who had accepted the reduced pensions. He did not restore the pensions of those who under duress had taken lump sums, and neither did he pay any one’s arrears. For the last two years there has been a Core Group of the 2012 Pensioners (all respectable senior citizens) who have tried to get the Coalition Government to resolve their case: Ross MacDonald (Chair), Matt Wilson, Dewan Chand, Daniel Fatiaki, Hassan Khan, Ronnie Chang, Professor Vijay Naidu, Dr Esther Williams, Libby Reade Fong, and Professor Wadan Narsey (from Melbourne). The late Jackson Mar was a driving force in the Core Group until he passed away a few months ago. Behind them all have been their quiet but equally powerful and supportive partners. Last week the Prime Minister met with three members of the Core Group, rekindling their hopes for full Restorative Justice. Sadly, despite the anguish suffered by many Letter Writers, there has been no acknowledgement from the FNPF Board of the legitimacy of the 2012 Pensioners’ claims nor any sympathy or practical solutions, despite FNPF’s healthy financial state. Indeed, FNPF Board Chairman (Mr Daksesh Patel) recently announced with great fanfare that for 2025 the “highest interest rate in over 30 years… 8.75%” would be credited to all Members, (2025 Annual Report, p. 9). But the 2012 Pensioners were not impressed with Mr Patel’s claim “the true measure of our success lies in the quality of the service, transparency, and assurance we provide to our members every day. We recognize that value is not purely financial; it is holistic, encompassing trust, accessibility, and security.” The 2012 Pensioners were also not impressed when the FNPF CEO (Mr Viliame Vodonaivalu) stated “To our members, pensioners, employers, and partners- ‘Vinaka” for your continued trust and confidence” (p.12). It is an utter farce that FNPF has also been spending thousands of dollars in full page media advertisements “thanking” the FNPF Members and Pensioners. For what, we may all ask? A silent indicator of FNPF’s lack of transparency is that the 2025 Annual Report makes no comment on the most important barometer of “trust” and “transparency” – the “Pension Take- up Rate” for new Retirees, which indicates a disaster has taken place in “trust of FNPF”.
What “trust” and confidence”? The “Pension Take Up Rate” is the percentage of new retirees who choose the pension option rather than take their savings away. This had collapsed to a record LOW of 2% for 2012, hovered around 4% for thirteen years and is now again 2% for 2025. Thus 98% (or 98 out of every 100 retirees) DO NOT TRUST the FNPF Board and Management to manage their retirement savings through pensions. The FNPF has failed to fulfil the original objective for setting up the FNPF – be a “pension fund” and not just the “savings fund” it is today which is being milked by all and sundry. In the glossy 2025 Annual Report the Pension Take-Up Rate is shown as a small declining graph for just the last five years (p.22). The FNPF Members must ask the FNPF Board, why do the Annual Reports no longer show the long term graph (see inset) which proves the long term disaster that the Pension Take Up Rate was once was a record high 37% in 2004, under the Qarase Government (see my inset).
With the threat of the Bainimarama coup against Qarase, this Pension Take Up Rate then began to decline and fell to 2% in 2012 after the Bainimarama Government and FNPF Board committed their brutal robbery: (a) Through an illegal military Decree, they broke the lawful contracts of existing pensioners and reduced the pension rate to less than 9% for those continuing the pensions, while forcing the others to take their “lump sums”. Yet FNPF had warned Pensioners on Form 9NOP which they had signed in good faith “I also understand that the option I have made on this form is final and cannot be changed or revoked”. But the FNPF itself callously revoked that contract in 2012.
They ignored the advice of experienced Australian consultancy firm Promontory whose Report explicitly stated (Paragraph 24) “ Any retrospective adjustment of existing pension benefits would be difficult under contract law…… it is not further considered …”. (b) When the David Burness/Dr Shameem case was being heard in court 2011 (supported by my sworn Affidavit) by Justice Hettiarachchi, the Bainimarama/Khaiyum Government imposed a Military Decree throwing the case out of court, denying the 2012 Pensioners their basic human right to go to court with their perceived grievances. The late David Burness eventually passed away in despair. Despite their fiduciary duty to the 2012 Pensioners, not a single member of the 2011/2012 FNPF Board protested or resigned over the fundamental denial of the basic two human rights of the 2012 Pensioners (sanctity of their contracts and property rights, and their right to go to court for perceived injustices.). The one noble exception has been the late Parmesh Chand (a Permanent Secretary in several governments) who just before he passed away recently, expressed regret at the injustice done to the 2012 Pensioners. The Fiji Law Society made no protests. One legal lion still in the public limelight today even argued with a straight face to Justice Hettiarachchi that there was no such entity as FNPF which could be sued in court. He did not care that Article 4 of the old FNPF Act stated that the FNPF Board shall be a body corporate and shall, by the name of “The Fiji National Provident Fund Board”, have perpetual succession and a common seal …. The Board may sue and be sued in its corporate name and may enter into contracts.” That 2011/2012 FNPF Board also committed other illegalities such as making differential payments to low income and high income pensioners, and also paying out more than the rate of inflation even though they had not covered all their liabilities (both banned in the original FNPF Act). What an irony and a bitter pill for the 2012 Pensioners to swallow that the perpetrator of the 2012 Robbery, the former Prime Minister Voreqe Bainimarama, having denied the poor pensioners their day in court, recently went to court arguing for a $770 thousand pension and gratuity payout (supported by one lawyer who had put the boot into the 2012 Pensioners). Bainimarama’s outrageous claims were denied by the High Court (though he still receives a massive prime minister’s pension). Proof of FNPF Awareness of their Guilt Clear proof of the guilt that FNPF Board and Management felt in 2012 was in a “Key Features Statement” (see inset) informing all pensioners that after 1 March 2012 while annuity rates may be changed in the future based on actuarial advice “Any change in rates in the future will only affect new purchasers, not those who have already purchased the product”. Too late. The Pension Take Up Rate had already fallen to 2%.
Most of the better educated retirees knew that with the retirement age at 55 and an annuity rate of less than 9%, they would need live to more than age 67 in order to get back their life savings. They already knew that many of their peer group were dying before the age of 65, the average life expectancy in Fiji for males, and 67 for females. Sad lack of Board Accountability Over the last two years, Fiji Times readers will have seen dozens of letters and articles written by law abiding senior citizens who have given their working lives to Fiji while contributing to FNPF, with the honest expectation of pensions for life they had signed up to.: Ronnie Chang, Dewan Chand, Rick Rickman, Daniel Fatiaki, Professor Vijay Naidu, Libby Reade-Fong, Tahir Ali, as well as many others. There are also independent voices of Fiji’s conscience like Colin Deoki and Rajendra Naidu from Australia. But sadly, to my knowledge, not a single current FNPF Board Member today (three of whom are friends of mine) has ever communicated with any of the Core Group to express sympathy at the grossly unfair treatment of the 2012 Pensioners. Today’s Board Members make a mockery of their fiduciary duty to be accountable to ALL FNPF Members and pensioners, past and present, as proudly boasted by every Annual Report. I remind that the 2011 Annual Report’s Mission and Vision Statements specifically had among its Values “accountability” (being answerable and having the courage and honesty to take ownership of our actions) and “fairness” (treating everyone in an equitable and non-discriminatory manner). Was it a coincidence that by 2016, the word “fairness” had disappeared from the Mission and Vision Statements, and by 2017 the word “accountability” had also disappeared. Neither of these two values are to be found in the 2025 Annual Report. The 2025 Annual Report (in which there is now a supporting signed statement by the Board Members including the Chairman) gives not a hint that the FNPF, as a corporate body, may be legally liable for the restoration of the 2012 Pensions illegally revoked by the Bainimarama Government and a previous FNPF Board. Neither does the KPMG Audit Report give any hint in its Audit Statements that FNPF needs to have contingency funds to settle claims by the 2012 Pensioners. FNPF’s Board Member’s False Rebuttal Far from being sympathetic to the robbed 2012 Pensioners, one FNPF Board Member at a recent meeting with the 2012 Pensioner Core Group, alleged that doing justice to the 2012 Pensioners will require funds to be taken from current Members. This is a gross misconception, no doubt shared by some other Board Members and some in the FNPF Management. This Board Member clearly had no idea that the lawful Ratu Mara Government had created in 1975 a “Pension Buffer Fund” specifically for the payment of all pensions and receive the lump sums of those taking the pension option, and it would have been more than enough to pay all pensions.
It was to the Core Group’s dismay that a once well respected lawyer for FNPF present at the meeting (and a long term personal friend of mine) pompously declared (with the former Chief Justice present) that the FNPF had to follow the LAW, without admitting that the LAW was an illegal military Decree. Where is the Pension Buffer Fund? This PBF had initially been supplemented by a 2 cent deduction from all Members but that was stopped in 1999 when the PBF had grown large enough. But the 2012 Annual Report had a false graph of severely declining Pension Buffer Funds allegedly dropping to a mere $81 million in 2011. Then the Pension Buffer Fund strangely disappeared from the Annual Reports. There was another false graph showing that General Members would have to subsidise the pensioners for forty years to the year 2054. This was another blatant lie perpetrated by the FNPF Management and the Board (then chaired by Ajit Godagoda). This Pension Buffer Fund was invested by FNPF and should have received the interest income that all FNPF funds received. But it was not credited with any interest. My Table 1 below shows that the PBF far from declining to $81 million by 2011 (as FNPF falsely alleged), the balance available for paying pensions would have been around $903 million in 2011, had interest been properly credited to it. Table 1 Pension Buffer Fund (1975 to 2025) ($million) (Without Interest and With Interest)
A similar figure was independently calculated by accountant and fighter for justice, the late Jackson Mar. This Pension Buffer Fund would have more than adequately covered the $49 million annual pension payment then, and indeed the entire $565 million of long term “vested benefits for pensioners” calculated by FNPF actuaries (as given in the 2011 Annual Report). I estimate that, even allowing for $130 million (my rough estimate) paid out of the Pension Buffer Fund in 2012 for those who were forced to take “Lump Sums”, the same Pension Buffer Fund would today amount to $1,382 million. Of course, this sum is hidden in all the huge “accounting” Reserves that the FNPF created thereafter. FNPF not a normal business but Gold Mine I remind that the FNPF is not a “normal” business which has to struggle and compete in the market for revenues and profits. Instead it is a veritable “gold mine” the envy of all commercial banks in Fiji, where BY LAW 18% of the Total Wages and Salaries Bill in Fiji pours into its lap, EVERY YEAR, as Member Contributions. In 2025, this legal inflow amounted to an incredible $962 million. On the negative side, they had to pay out a mere $531 million in legal benefits: consisting of $300 million for retirement lump sums; $82 millions for emigration; $56 million for housing $40 million for death; and a mere $26 million for pensions. Taking into account the compulsory contributions alone., FNPF easily makes a net $431 million surplus annually.
In addition to that you can add all the profits and dividends from their investments, and loans especially to Government which has borrowed more than $4 billion currently (perhaps earning $240 million in interest annually). For financial year 2025, FNPF enjoyed AN INCREASE IN NET ASSETS OF SOME $931 MILLION. FNPF accounts show a total FNPF Reserve of $2,303 million (more than 2 billion dollars) of course beefed up by the Pension Buffer Fund; FNPF also had cash holdings of $765 million. WOW. (Did the FNPF not know where to invest?) FNPF today is a “Gold Mine”, helped by their robbery of the lawful property of the 2012 Pensioners who are today still crying for Restorative Justice. The Way Forward May I humbly suggest that the Prime Minister (and the new Minister of Finance) pay heed to the call by the former Chief Justice (Mr Daniel Fatiaki) for the speedy Repeal of the two illegal FNPF Decrees that facilitated the 2012 Robbery (just as speedily as they repealed the Media Decree). May I humbly suggest that the Prime Minister through the Finance Minister also instruct the FNPF Board to provide them, the FNPF Members and the public the following: (a) their estimated current value of the original Pension Buffer Fund, fully credited with annual interest which the FNPF has credited to all its funds used for investment purposes) to be compared with my Table 1 rough estimates); (b) the annual cost to FNPF of immediately renewing all the pensions that the 2012 Pensioners were receiving before 1 March 2012; (c) the cost of paying all Arrears to the 2012 Pensioners after allowing for whatever they received from 1 March 2012 till now (reduced pensions, lump sums, annuity payments). These arrears could be payable in three annual instalments if FNPF so wishes; and payable to the Estates of Deceased Pensioners; The above would amount to full Restorative Justice for the 2012 Pensioners. I have also personally suggested to the Board Chairman that some high income pensioners might even accept some decent monthly cap (I suggested $5,000 per month) on their renewed pensions from 1 March 2012, if that expedited full restoration and restitution for the low income pensioners who comprise more than 90% of the original 2012 Pensioners. I would suggest to the Prime Minister and Minister of Finance that if the current FNPF Board declines to co-operate with Government, then the new Minister of Finance is surely entitled to appoint new members who have full respect for the lawful contracts that the 2012 Pensioners signed in good faith with FNPF before 1 March 2012 as implied in the FNPF Mission and Vision Statements.
Doing justice to the 2012 Pensioners and correcting a grievous wrong done by the Bainimarama Government would go towards fulfilling an election promise made by the Coalition Government – to return Fiji to Democracy and Rule of Law, that had been denied by the Bainimarama Government between 2006 and 2022. [I pay tribute to the late Jackson Mar who fought the injustice of the 2012 Pensioner Robbery till he passed away a few months ago without seeing justice. Two years ago he and Dr Esther Williams met with the former Minister of Finance hoping to progress the case. When there was no progress from the Government end, Jackson strongly pushed for the Core Group to mount a legal case but the consensus then was that a political solution would be speedier, with which Jackson strongly disagreed. The jury is still out on that option. I also pay tribute to the 2012 Pensioners who through the Pensioners Website used to publish my articles during the dark days of the Bainimarama/Khaiyum censorship when the local media would not publish them.]
Fiji Pensioners 