How did the FNPF do it?

Between 2011 and 2012 the value of assets held by the FNPF increased from $3.8 billion to $3.9 billion. That’s an increase of 2.6%.

Somehow the FNPF managed to give a dividend of 5.5%. How can this be possible? How can an increase of funds of only 2.6% allow the Fund to award a 5.5% increase in the value of the funds held by the contributors?

To do this the Fund has to reduce something on the other side of the balance sheet, namely the obligation to pay out funds to people who are going to retire and take a pension.

Yes, this dividend, which is really fairly modest, has been paid for by pensioners who have had to suffer their pensions being cut below the levels promised to them.


One Response to How did the FNPF do it?

  1. Rick Rickman says:

    Not only cutting pensions; confiscating monies put aside for spouses pensions and only paying death benefits on a selective basis. The management and board of the FNPF are presently protected by a very fragile net of immunity constructed by individuals who have legalised corruption by the few and deprived the aged of basic civil rights so they can no longer appeal to an acceptable rule of law. But the wheel continues to turn, albeit very slowly, one day the rule of law will apply.
    There should be no immunity under the new constitution for any individual who has practiced corruption under the present government.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: