16 May 2011

Fiji pension fund to lower payouts

8:22 am on 16 May 2011

Members of Fiji's pension fund, the National Provident Fund, could receive lower payouts in the future.

A gathering over the weekend to discuss reforms to the fund heard that current payments could not be sustained.

The recommendations are to drop the payment for a single person who retires at 55 to 8.8 per cent a year of the total saved, down from a current level of 15.

Less drastic changes would come into play for those that retire later.

There are also suggestions that contributions must also increase.

The Fiji Times quotes the interim Attorney General, Aiyaz Sayed-Khaiyum as saying the reform act would be in place by July, but any changes would be introduced slowly.

The interim regime has introduced compulsory retirement for public servants at 55 as part of efforts to downsize and to create jobs for young people