NEWBORN Fijians can now become members of the Fiji National provident Fund (FNPF) following an amendment to the FNPF Act 2011.
In a statement issued this week, FNPF said the change is effective this month and removes the minimum age limit, which was previously set at six years old, and now allows newborns to be registered as minor voluntary members. FNPF chief executive officer Viliame Vodonaivalu said the change was part of the pension fund’s plans to encourage a culture of savings, particularly for children.
“There’s no doubt that for many of our members, their retirement savings is their only source of savings,” he said.
“While our minor voluntary membership scheme was previously open to children 6 years and older, this change now enables parents to start the savings plans for their children from birth.”
“It is basically another avenue for parents to plan for their children’s future, especially since their savings kept under their minor voluntary accounts, allows for payment of tertiary level studies as well as medical treatment.”
“Savings with FNPF benefits from compound interest – apart from investment returns so the funds that are kept in any member’s account will keep growing even with small amounts being paid into it at regular intervals.”
Mr Vodonaivalu said the minor voluntary membership scheme offered several benefits including:
n Development of strong financial habits for the child and parents/guardians:
n Empowerment for achieving goals such as a first home deposit;
n Allowing time for growth — savings grows through compound interest, which can turn small amounts into substantial sums over time;
n Security to mitigate the financial impact of unexpected events.
Minor voluntary members must be registered by a parent or a guardian and the minimum deposit required to open an account is $10 and the minimum monthly deposit is also $10.
