NJMPF PENSIONER NEWSLETTER
Your quarterly news update – September 2019
Message from the CEO / Principal Officer Bongi Mkhize
Welcome to the Spring 2019 issue of the Pensioner Newsletter.
The KwaZulu-Natal Joint Municipal Pension/Provident Funds has done it again!
The NJMPF joins a list of high-achieving organisations across the World that received accolades during the 16th Annual International Business Awards, also known as the Stevies.
The Fund scooped two awards:
Gold Stevie Winner for the NJMPF Roadshow presentations and Bronze Stevie Winner for the ‘What is your deal when it comes to retirement?’ playing cards initiative.
Both these wins for the NJMPF are significant as they are a symbol of providing superior retirement outcomes for Pensioners. The winning nominations are both financial literacy initiatives the NJMPF prides itself in and shows that the Fund is well on its way in achieving the goals of educating Members and improving financial literacy levels.
The NJMPF has been nominated as a finalist for the World Pension Summit Innovation Awards 2019! The nomination is for the implementation of the NJMPF’s In-House Living Annuity Policy and Preservation options.
IMPORTANCE OF UPDATING YOUR PERSONAL INFORMATION
The Fund has distributed all Pension Increase letters and IRP5’s for 2019. If you have not yet received these documents, please contact the Fund on 031 279 5300 or email email@example.com.
According to investment reports, 2018 was the worst year in a decade for South African stocks. The JSE All Share Index (Alsi) was down 11% in Rand terms last year and as a result the investment returns were low in 2018. 2019 has seen improved performance in the markets and the results of the recovery will come through in portfolio returns.
For our Superannuation and Retirement Fund Pensioners, investment performance has an indirect effect on your pension, as investment returns impact on investment reserves which determine your increases and bonuses.
WHAT’S ALL THE HYPE ABOUT PRESCRIBED ASSETS?
There has been a lot of media coverage around Prescribed Assets. The Fund has also received numerous calls enquiring about how it effects the NJMPF and retirement benefits.
What does this proposed idea mean?
Prescribed Assets, as it relates to your Fund, is when the government force financial institutions and pension/provident funds to invest a part of their assets in government approved instruments. The aim is to boost the flow of funds into projects and help grow the economy and create jobs. The much-publicised financial strain SOE’s are facing makes the public at large weary of investing in these instruments.
Prescribed assets are not new in South Africa. According to a media source, prescribed asset investing took place for almost 30 years before being abolished in 1989. Looking at the poor performance of the assets then, makes commentators more hesitant now.
South African pension funds are already subject to some prescription under Regulation 28 of the Pension Fund Act which limits the extent to which retirement funds may be invested in particular categories of assets.
However, as the Prescribed Assets concept is only a proposal presently, Members and Pensioners should not make any rash decisions about their retirement savings. No doubt though, these investments are seen as riskier than investments chosen and monitored by your Board of Trustees.
MEET YOUR NEW TRUSTEES VOTED FOR BY YOU
The NJMPF is pleased to announce the newly elected Employer Representatives and Provident Fund Trustees.
According to Section 7C of the Pension Funds Act, the objective of the Board of Trustees shall be to; di-rect, control and oversee the operations of the Fund in accordance with applicable regulations of the Fund. In pursuing its objective the Board: “shall take all reasonable steps to ensure that the interests of members in terms of the rules of the fund and provisions of this Act are protected at all times.”
ELECTED PROVIDENT FUND MEMBERS
|1. M FUNEKA (Impendle Municipality)||1. BL RADEBE (Uphongolo Municipality)|
|2. FF ZAMA (Ugu Municipality)||2. NH MAKHANYA (Harry Gwala Municipality)|
|3. MS BUTHELEZI (Zululand Municipality)||3. PX MADWE (Ugu Municipality)|
|4. DA LEMMER (Uthukela-Water )||4. T MLAMBO (Big Five Hlabisa Municipality)|
|5. ME NGCOBO (Ugu Municipality)||5. EV MDLALOSE (Umvoti Municipality)|
|6. S MBUTHUMA (Uthukela-Water)||6. MH ZWANE (Uphongolo Municipality)|
ELECTED EMPLOYER REPRESENTATIVE TRUSTEES (COUNCILLORS)
|1. F PEER (Ethekwini Municipality)||1. MC ZUNGU (Umkhanyakude Municipality)|
|2. TN JOJOZI (Harry Gwala Municipality)||2. E XABA (Umgungundlovu Municipality)|
|3. Y NAIR (Ugu Municipality)|
|4. MV NYATHI (Umuziwabantu Municipality)|
|5. BD MADONSELA (Umvoti Municipality)|
The secret to longevity …….. is to keep breathing.
– Sophie Tucker
Age is no barrier . It’s a limitation you put on your mind.