6% crediting rate equivalent to $168,612,861 paid to SINPF members accounts

The Solomon Islands National Provident Fund (SINPF) has awarded a 6-percent crediting rate to its members as of today, 30 September 2021.

The 6-percent crediting rate is equivalent to a total interest of $168,612,861 which will be credited to members’ accounts.

Supervising Minister of Finance and Treasury, Prime Minister Manasseh Sogavare while announcing this today said, this year’s Members’ rate is higher than the 3.7% paid out to members in 2020.

Mr Sogavare said a total of $90,964,922 has been paid into the Fund’s reserve.

He said this year’s crediting rate shows that the Fund has been investing and managing members’ 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. 

The six percent crediting rate is for the Fund’s members for the financial year ending 30 June 2021. 

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.

He 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.

The Prime Minister also announced 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 also encouraged all staff, and members of the SINPF to go for their 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. 

by Jared Koli