MESSAGE FROM THE CEO/PRINCIPAL OFFICER MR. BONGI MKHIZE
Members of NJMPF, greetings in the New Year!
I hope you have a successful year ahead with good results. Sow seeds of dedication, hard work, commitment and you will enjoy fruits of happiness
and success. Warm wishes on the advent of the New Year 2023. May you have a great year. There are numerous reasons why you should begin saving for retirement as soon as possible. The most obvious benefit is that you have plenty of time to accumulate a sizable nest egg that will allow you to retire comfortably without having to rely on either your children or the government for support. Another is that you have that much more time to benefit from
the government’s tax benefits on retirement savings.
As aging populations, rising interest rates, financial market volatility, and high inflation rates place additional financial strain on pension schemes and government benefits. Retiring is becoming more challenging. At every stage of a person’s life, financial independence is crucial. You can maintain your level of living at retirement by beginning to plan for it early in your working career. NJMPF has various financial literacy programmes that can assist you with ensuring you retire comfortably, through the Funds roadshows, workshops, newsletters, and info graphics. Members can be financially educated to ensure they are able to make informed financial decisions.
NJMPF INDUSTRY RECOGNITION
I am delighted to announce that your Fund has done it again, in the last quarter of 2022 NJMPF received two international awards of excellence from the Global Banking and Finance Review Awards. The Fund was recognised in the following categories: –
Fund Administration Company of the Year – South Africa 2022
Pension Fund CEO of the Year – South Africa 2022
Equally as important as the service we give our members and the retirement benefits we pay to our members, is being recognised by industry regulators for best practices. This affirms that providing superior retirement services is not just our motto, but a code we live by to ensure that our members retirement outcomes improve so that more and more people can retire comfortably.
DID YOU KNOW?
There are other investment options that you can explore besides only relying on your employer pension fund benefit. You have lots of beneficial, reasonably priced solutions at your disposal. NJMPF recommends that members seek financial advice from certified financial planners to choose the best option for them. The best place to start is with a tax-free savings account, which enables you to save up to R36 000 a year without paying tax on the growth. The amount you can deposit into a tax-free savings account is subject to a cap. The lifetime contribution cannot exceed R500 000, and the cumulative contribution for a tax year cannot exceed R36 000. If the total of your yearly contributions does not exceed the annual or lifetime limits, it makes no difference how much growth you earn on your contributions. The introduction of Tax-Free Investments was intended to promote household savings. The start date for this incentive was March 1, 2015.
WHAT TO DO WHEN LEAVING YOUR CURRENT EMPLOYER
Examining the choices that members frequently must make and some variables to consider while making judgments. The process of saving for retirement typically takes many years, and it always comes to a point where you must quickly decide on several important choices. These choices might have numerous implications, so it’s crucial to get them correctly the first time. Here, we examine the most typical choices members must make and some elements to consider when making those choices. You can save more money for retirement by increasing your contributions to your Provident Fund. If you
are already contributing the maximum rate, you still have an option to apply for additional voluntary contributions. It is also recommended to maintain your retirement funds invested with the Fund when changing employment in order to gain from compound interest and prevent significant tax burden. There
are several tax-free choices available to you upon leaving your current employer. NJMPF advises members to get financial counsel to determine which option will best suit your personal and financial needs. Below are some of the options you can consider when changing employers:
• There is no benefit payable to members transferring from one municipality to another municipality in KZN, instead that member’s benefit is transferred with the member to the new employing municipality,
• Members leaving municipal employ to work outside KZN local government have an option to transfer their savings to the new employers’ pension/provident fund,
• You can also keep your funds invested within NJMPF through a paid-up status (not making further contributions to the fund and thus becoming a preserved member).
• NJMPF’s Preservation Fund allows you to transfer your retirement fund benefits into the Fund’s preservation account, which serves as an effective holding account for your money until you are ready to withdraw from the Fund. However, before making this decision, there are a few things to keep
in mind. You are also only allowed to transfer your whole lumpsum and not a portion of you benefit.
ANNUAL INFORMATION MEETING (AIM)
Date: 17 March 2023
Time:10am
Venue: The Durban ICC
The NJMPF will be hosting a hybrid annual information meeting on the 17th of march 2023. A formal invitation will be sent out via all NJMPF’s communications platforms. Members are requested to keep an eye out for this communique. The pandemic taught us how important it is for people to meet people and connect, and the NJMPF prides itself in meeting and engaging with its members especially having hosted the AIM virtually for the
past two years due to the pandemic. However, it is important to note that if you still feel unsafe around large crowds gathered at one place, NJMPF will cater to your needs and safety. Members will have an option to attend the live event or stream live at the comfort of their homes or offices.
Kindly RSVP by the 24 February to info@njmpf.co.za.
Benefits of your participation include:
• An awareness of how your funds are invested and how market performance affects your benefits.
• A better understanding of your Fund and its 80 year long journey of providing retirement services to
KZN Local Government Employees.
• An opportunity to provide your input on matters that concern you, your retirement future and savings.