6% crediting rate to NPF members’ equals to $168,612,861 to be paid to members

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The six percent crediting rate to Solomon Islands National Provident Fund members’ is amount to a total interest of $168,612,861 which will be credited to members’ accounts as of today.

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Prime Minister Manasseh Sogavare, who is also Supervising Minister of Finance, said this year’s members’ rate is higher than the 3.7% paid out to members in 2020.

“It shows that our Fund has been investing and managing our funds well despite the challenges posed by the pandemic.

According to Sogavare, the full $168,612,861is paid from the Funds operational performance in the past year, as compared to last year’s members rate where the Board had to use parts of the reserve to meet the payment.

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Sogavare states that the past 15 months to 30 June 2021 had been a challenging time for the global economy including Solomon Islands, and the SIPNF had not been spared the negative impact of the global COVID-19 pandemic.

“Despite these challenges I have been advised that the Fund has a rewarding year with gross incomes expected to settle just over $400 million for the year. After adjusting for direct investment costs, impairment costs, and operational costs, the Board is confident that up to $340 million will be available for crediting. In considering the crediting rate award Board is extremely conscious current economic volatility driven by the ongoing impacts of the global pandemic,” said the PM.

The Board is also guided by my government’s continued efforts to manage the pandemic for a successful outcome to a new normal.

“In this regard, I am reassured that the Board has set aside adequate reserves based on its due diligence of current and future volatilities that may arise from ongoing economic downturns resulting from the pandemic, market movements, and movements in individual assets of the Fund’s investments portfolio,” Sogavare said.

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