Member and employer contributions are payable to the fund by no later than the seventh (7th) day after the end of the month in respect of which the contributions are payable. For example the September-contributions must have been paid to the fund by the 7th of October. Non-payment of contributions by an employer can have a negative impact on members and an article on this important topic is provided later in this article.
We have noticed an increase in fraudulent claims being submitted to the fund. These include fraudulent funeral claims and withdrawal claims from members wanting to claim their retirement savings without terminating their employment. The fund understands the financial pressures that members face, but cannot tolerate or condone fraudulent claims submitted and must report such conduct to the authorities.
The latest benefit statements were posted to all members during August, providing figures as at 30 June 2019. Members who have not received their statement/s are cordially requested to contact the fund to ensure that we have their correct contact details on record. Remember, you can also make use of the interactive site to view your fund information.
Enjoy reading this edition of the mailer and remember, we are always here to help if you need any information or assistance with any fund-related matter.
NON-PAYMENT OF CONTRIBUTIONS
In terms of Section 13A(3)(a)(i )(ii)(iii) of the Pension Funds Act 24 of 1956, all contributions must be paid to the fund by no later than the seventh (7th) day after the end of the month in respect of which the contributions are payable.
In the event of non-payment of contributions by an employer, the fund follows a stringent process, which starts with engaging with the employer in order to recoup the outstanding contributions, where after the matter is reported to the Financial Sector Conduct Authority (FSCA), a complaint is lodged with the Pension Funds Adjudicator and the matter is reported to the SA Police Service and the National Prosecutor.
The premiums for risk cover (death, disability and funeral) are deducted from the monthly contributions received by the fund, which means that if no contributions are received for three consecutive months, the risk cover will lapse. Should a claim arise during this time, the fund will not be able or liable to pay any of the insured benefits and the member may sue the employer for any damages suffered.
The fund is legally required to notify members of the non-payment of contributions by the employer and sms-notifications are sent to them with details of the month/s for which the contributions are due. Members can contact the fund for further information and are encouraged to address this matter with the employer.
Please note that these sms-notifications will only be sent to members whose employers have not paid contributions. Therefore, if you have not received an sms notification from the fund it means all your and the employer's contributions are paid up to date.
LATEST INVESTMENT UPDATE
What happened in August? South Africa miraculously recorded a positive growth rate of 3.1% in quarter two (Q2) thanks to a recovery in mining and manufacturing. Mining production surged by 14% as iron ore prices rebounded and electricity supply stabilised while manufacturing production rose a more modest 2.1% after declining 8.8% in the first quarter. The latest rise in economic activity offset the shock decline in quarter 1 (Q1) and should be sufficient to avoid a recession in 2019. While the recent growth numbers are a huge relief, Eskom’s debt burden remains a challenge for President Ramaphosa and one of the main threats to the country’s credit rating.
Local markets fell sharply in line with global emerging markets through the month but recovered slightly at month end. The All Share Index fell 2.4% in the month, while the Capped SWIX index dropped 2.7% as financials (-4%) and industrials (-3%) fell sharply. Resources fell just 0.2% as gold mining gained 29% on higher gold prices and a weaker rand. Sasol continued to weigh on the bourse with the share price falling another 7% on the back of lower oil prices and poor sentiment. Listed property stocks fell 3.6% for the month as they followed equities lower. The All Bond Index gained 1% as yields fell to 8.2% on increased demand from yield hungry foreigners but the rand nevertheless weakened by 5.9% to end the month at R15.19 to the dollar on Eskom worries. Read more
The table below indicates the most recent and longer-term returns experienced by the various NFMW -portfolios as at 31 August 2019.
|Portfolio||3 months||1 year||3 years Ann||5 years Ann||10 years Ann|
Absa offers you, as a member of the National Fund for Municipal Workers (NFMW), financial service solutions to make your life easier. Read more.