The new chairman of the Solomon Islands National Province Fund, Dr. Jimmie Rodgers, has explained that his board when considering the 2020 appropriate interest rate took account into account, the Board’s crediting reserving policies. The crediting policy requires that Board to consider:
1) the investment return after deducting for all board and operational costs
2) the Board’s investment objective
3) the reserving requirement of the Funds
4) The fund’s code of conduct and the
5) the minimum statutory 2.5% crediting rate as specified in section 8 of the NPFT Act.
Speaking today, Dr Rodgers said: “It has been a difficult determination for my board to consider the 2020 members crediting rate in light of the ongoing uncertainty and risks surrounding covid-19 and how long the pandemic will take to resolve.”
“With care and prudence and fairness to members, my board today has considered and agreed to declare a crediting rate of 3.7 for its members. This means a total of $95m will be credited to members’ accounts after today’s announcement,” he stated this afternoon.
Dr. Rodgers said after the crediting, the Fund’s required reserving levels are still maintained above the Board’s minimum policy thresholds of CBSI 7.5% tier 1 capital ration and at least three years of 2.5% crediting interest guarantee.