Members get increased interest credit rating
By EDDIE OSIFELO
MEMBERS of Solomon Islands National Provident Fund (SINPF) were gifted with a crediting rate of 6 percent for the financial year ending 30 June 2021.
Prime Minister Manasseh Sogavare made the declaration at Heritage Park Hotel yesterday.
Witnessed by SINPF Board, Governor of Central Bank, Dr Luke Forau, Permanent Secretary of Finance, Mckinnie Dentana, Solomon Islands Chamber of Commerce and Industry, chairperson of SINPF subsidiary companies and media.
Sogavare saida total interest of $168,612,861 will be credited to your accounts as from 30 September 2021.
He said a total of $90,964,922 has been paid into the Fund’s reserve.
Sogavare said this year’s Members’ rate is higher than the 3.7% paid out to member in 2020.
“It shows that our Fund has been investing and managing our funds well despite the challenges posed by the pandemic.
“I am also happy to inform this August gathering that the full $168,612,861 is 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,” he said.
In relation to the ‘Members Special Death Benefit’, Sogavare said the Board has decided to keep the rate at $7,500 noting that this was only increased to this new level last year.
Sogavare said as you all know that the past 15 months to 30 June 2021 had been a challenging time for the global economy including our own in 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,” he said.
Sogavare said in considering the crediting rate award Board is extremely conscious current economic volatility driven by the ongoing impacts of the global pandemic.
He said 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,” he said.
Furthermore, Sogavare said the Fund is an important player in the government’s securities market investing in the government treasury bills and long dated development bonds.
“During the year, the Fund purchased a total of $240 million long term development bonds providing funds for my government to invest in necessary infrastructure and to support my government’s economic stimulus package to keep our economy going.
“My government recognises the vital role that the Fund plays in our financial sector.
“In that regard it is vitally important my government continue to ensure the Fund is well managed and protected,” he said.
Sogavare would also like to announce that in due course his government will bring to Parliament the new SINPF bill.
“I am also encouraged that positive movements in the Fund’s investments portfolio have contributed to the government’s improved sovereign risk rating – which is one of the key criteria in the independent fair value valuations of the Fund’s unlisted equities,” he said.
In addition, Sogavare use this opportunity to encourage all staff, and members of the SINPF to go for your vaccination as soon as possible.
“In order for us to reopen our borders, we must vaccinate up to 90% of the total eligible population in our country of 414,327 people which is 372,895 people.
“If all members of the SNPF were to be vaccinated, we will be able to reach our vaccination target much quicker and reopen our borders much earlier,” he said.