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SINPF reserve level below $400m

THE Solomon Islands National Provident Fund is sustaining a reserve level that is below $400 million.

SINPF Board Chairman, Mr Peter Boyers made the statement during the end of the 2016 financial year recently.

He said the reserve level is below $400 million ($399,328,839) consisting of a general reserve of just over $329 million ($329,377,496) and a revaluation surplus of just under $70 million ($ 69,951,343).

Mr Boyers said these represent 10 percent general reserves only and 13 percent total reserves of the total funds under their management.

In the meantime, he said though in some jurisdictions where retirement funds are not required to have reserves or have at least a 4 percent reserving for total funds under management, for financial prudence the Board will continue to maintain adequate level of reserves.

Adding that this is higher than other jurisdictions to finance the guaranteed 2.5 percent annual crediting for at least 3 financial years and to absorb any future shocks to any parts of SINPF investment portfolio.

However, he said to attempt provision for a major social or economic collapse such as the recent civil unrest can never be guaranteed to succeed as SINPF had experienced.

Mr Boyers said that happened during the period of 2000-2004, when the funds general reserves had gone into negative.