NPF board to decide next week on partial withdrawal of members’ fund

By EDDIE OSIFELO

SOLOMON Islands National Provident Fund (SINPF) Board will deliberate on the request next Tuesday 15^th March for eligible members to partially withdraw their funds.

One Board member confirmed that Solomon Islands Chamber of Commerce and Industries has sent the request to SINPF Board to assess the request due to the Covid-19 pandemic that affected most members.

Secretary to Prime Minister (SPM) and Vice Chairman of the National Oversight Committee (NOC) Dr Jimmie Rodgers also confirmed last Sunday during the National Oversight Committee Talk Back Show.

He was responding to a question raised by one of the listeners who asked if there’s any plan by SINPF Board to allow members to withdraw part of their contributions.

In response Dr Jimmie who is also the chairman SINPF Board confirmed, a request has been submitted to the Board and they will be looking at it.

“We have received a request on it and SINPF Board will be looking at it,” he said.

Initially, members have withdrew about $5000 under the SINPF Exemption Order from 1^st April to 30^th June 2020.

This followed the endorsement made by Minister of Finance and Treasury Harry Kuma.

SINPF General Manager, Mike Wate told media in 2020 that about 20,255 were early withdrawals by members made under the covid-19 exemption orders for $97.5 million.

The Fund is established by the Solomon Islands National Provident Fund Act 1973.

It commenced operations on 1st October 1976 and classified as a defined contribution fund.

1. Members legally are to contribute a minimum of 5% and multiple of 10% on voluntary basis

• Employers legally are to contribute 7.5% on behalf of his/her employee
• Board mandated to declare a minimum statutory crediting rate of 2.5% to members on or before end of September (SINPF Amendement Act 2018)

In 2003, SINPF is deemed a financial institution under the Financial Institutions Act (FIA) and subject to prudential reviews by the Central Bank of Solomon Islands (CBSI)

Solomon Islands National Provident Fund comes under the responsibility of the Minister of Finance.

By virtue of the Solomon Islands National Provident Fund Act, the Minister has the overall authority concerning the affairs of the Fund.