All pensioners that reluctantly opted for a reduced pension rate, will have their pension restored effective from August 1st and moving forward.

Finance Minister Professor Biman Prasad says that in 2011, the former government has reduced the pension rates for many FNPF pensioners and broke the statutory arrangement and trust between the Fund and the pensioners.

Prasad further states that to deny justice, the Government enacted a law to restrict these pensioners from challenging this unfair treatment in the court of law.

In the last Budget, the coalition government provided some justice to these affected pensioners by allowing them to access the Government social pension allowance of $125 if they are above the age of 70 or $115 if they are between 60 to 69 years.

Prasad has announced that the current government is going to bring a permanent closure to this issue by restoring their pension.

“The cost of reinstatement will be fully borne by the Government and we have agreed to provide a funding of $4 million for this year. The full cost is estimated to be around $57 million over the next 2 decades. This payout is only for pensioners that opted to continue on a full pension but at reduced rates and excludes all those that chose to either fully or partially withdraw their funds.”

Prasad adds that as they reinstate the pension rates, the earlier arrangement to access the Government social pension scheme will cease from August 1st.

He also says that major amendments will be made to the FNPF Act to bring back the tripartite spirit in the board composition of FNPF.

Effectively, he adds that this means that by law there will be an employer representative and an employee representative in the Board of FNPF.

He stresses that this will ensure that the employees and the employers will now have a greater say in the governance and strategic affairs of FNPF.