by Ofani Eremae
Members of the Solomon Islands National Provident Fund (SINPF) will receive a 5.5% crediting rate on their balances this year – down from the 8% interest rate awarded last year.
Finance minister Rexom Ramofafia announced this at a ceremony held at the Heritage Park Hotel.
The event coincided with the Fund marking its milestone 50th anniversary and its 50th annual performance briefing.
SINPF general manager Mick Wate told those who gathered for the event that the Fund experienced a softer financial performance for the 12 months ending 30 June 026.
“The Fund recorded a draft gross income of $254.88 million – a significant decrease compared to the $430 million gross income posted the previous year,” Wate explained.
He noted that while cash incomes from strong dividends, bank deposits, government bonds, and property rentals performed well, the results were dampened by unrealized losses from the annual fair value revaluation of unlisted equities and investment properties.
“Despite these economic headwinds, the Fund’s overall financial position continued to expand,” Wate said.
He added that SINPF’s unaudited net asset value grew to $4.834 billion, up from $4.57 billion in 2025, driven by increases in cash, fixed-term deposits, and government securities.
“Total formal membership with credit balances also rose to 157,737, with total member contributions reaching over $4.42 billion.”
Wate highlighted that the Fund remains focused on mitigating the impacts of volatile global and national economic conditions – including ongoing international geopolitical tensions – under its 10-year Strategic and Business Plan (2024–2034).
He said the strategy aims to ensure the Fund can continue delivering above-inflation crediting rates to its members over the long term.
Meanwhile, SINPF board chair Dr Philip Tagini explains the reduction in the crediting rate from last year’s 8% to 5.5% is the price of property.
“Last year, our properties were priced higher, this year they were priced lower,” Tahini explained.
“Not only properties because properties were just one of the key ingredients of calculating the rates,” he added.
“Our cash is okay, it’s the equities (properties) that have changed so much. These are matters that we have to deal with.”
Tahini said one of the issues they have to deal with in terms of SINPF’s properties is the value of those properties.
He said they need to engage valuers who valued the properties according to how the economy puts values to those properties.
“So we have a sub-committee that will ensure the valuations of our properties are accurate.”
