Finance Minister Professor Biman Prasad addressed concerns regarding the government’s decision to restore pensions for Fiji National Provident Fund pensioners during a post-budget talanoa session.

He clarified that by law, the FNPF cannot independently restore pensions or fund the restored pensions, despite having the revenue and resources to do so.

Mark One apparel owner Mark Halabe raised concerns regarding the restored pension being funded by the government through the 2024–25 National Budget despite FNPF having the resources.

“Why wouldn’t FNPF be the ones refunding that money or giving it back? Why is the government of the day coming out and funding it with the national budget? FNPF has certainly got the revenue and the resources to compensate for that horrible situation that happened all those years ago. So why is it coming out of the national budget?”

Prasad announced in his budget address that all pensioners who reluctantly opted for a reduced pension rate will have it restored effective August 1, and moving forward.

Prasad states that the previous government enacted a law to restrict pensioners from challenging this unfair treatment in court.

“Decisions made under those laws, even now, cannot be challenged in a court of law. So even if we change that Act, which was unilaterally converted into an Act, you know, the lawyers and ladies will tell you what happened. Even if we change it, the decision that was made at that time cannot be challenged in court.”

Professor Prasad further explains that the FNPF is legally unable to restore pensions as they stand.

“And so the FNPF, by law, cannot do that as it is. And for this group of pensioners who chose or were forced to go on a reduced pension, the numbers are dwindling. There are only 1,500 of them left. Many of them—some of them have already died—are moving on. And we had no option but to take this approach, provide some reprieve, and bring closure to that.”

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