National Fund for Municipal Workers

Category A 


On a monthly basis your and the employer's contributions are paid to the fund. The risk cover cost (this is the cost of the death, disability and funeral cost) and administration costs are deducted from the employer contributions and investment returns are added.

What is my fund credit? Member contributions (2% of pensionable salary) + Employer contributions (2 % of pensionable salary) - Risk cover and administration cost + Investment returns = Fund credit

In the case of the unforeseen happening, like death and disability cover the following benefits becomes payable;

Death benefit

  • One x annual salary + fund credit (Category A1) or;
  • Two x annual salary + fund credit (Category A2) or;
  • Three x annual salary + fund credit (Category A3) or;
  • No cover (Category A0)

Death benefit payments are subject to Section 37C of the Pension Fund’s Act, which means the last will and testament, although taken into account for information purposes, does not determine how a payment is made. The nomination form, however plays an important role as it is used as an important guideline when the trustees make a decision on who the benefit should be paid out to. Please update your beneficiary information.

Disability benefit

  • One x annual salary + fund credit (Category A1)or;
  • Two x annual salary + fund credit (Category A2) or;
  • Three x annual salary + fund credit (Category A3)
  • No cover (Category A0)

The disability benefit as reduces by 1.67% per month from age 60 to age 65

Please note: From 1 July 2010 all new members only receive one x annual salary + fund credit for death and disability cover (Category A1).

Funeral benefit

All members and their qualifying family members are covered for the following funeral benefits.

  • Main Member : R 11 500
  • *Qualifying Spouse : R 11 500
  • Qualifying Children : R 4 700
  • *The qualifying spouse/life partner must be older than 15 and younger than the age of 75 when the member joins the fund to qualify for the funeral benefit. Members must ensure that their life partners are registered with the fund, by completing and submitting the Application for Registration of a Life Partner-form in order to qualify for the funeral benefit.

Death, disability and funeral cover cease when a member ends service or at the age of 65.

Repatriation benefit

This is an included service available on the death of a member or qualifying family members. It is available 24 hours a day, seven days week and offers the service of transporting the deceased, via road and/or air to place of burial within South Africa. This service is available from anywhere in South Africa, Lesotho, Swaziland, Zimbabwe, Botswana, Namibia and Mozambique. To claim, please contact the insurer on 086 0004 080, quote the name and ID of the deceased, name of fund and place where death occurred.

Voluntary funeral cover and burial packages

NFMW-members have the option to make use of any of the voluntary funeral benefits, which include:

  • Funeral cover for parents, parents-in-law and up to eight extended family members
  • Burial packages structured to your individual needs
  • Funeral cover conversion option which allows members to continue with their funeral cover when they resign, are retrenched or retire
  • These products are voluntary and, should any of the products be taken up by an NFMW-member, the relevant agreement will be between the member and the service provider and falls outside the rules of the fund. The number of family members you wish to insure and the amount and type of cover/burial package you choose, will determine the monthly premium payable to the external service provider by direct debit order. Please refer to the brochures below for costs and the applicable policy terms and conditions.

Withdrawal benefit

If you resign voluntarily or are dismissed, your fund credit will be paid to you as a lump sum. There is no restriction on the number of years’ service and no penalties payable. The benefit is, however, subject to tax. The fund encourages our members to always preserve their retirement savings and to consult with a professional financial advisor regarding investment options available.

Retirement benefit

Normal retirement age is at age 65, but members can go on early retirement from the age of 55.

Benefit payments at retirement:

  • Members who were 55 years and older on 1 March 2021 will have the option to have the full retirement benefit paid to them as a lump sum (if they remain a member of the NFMW until they retire).
  • Members who were younger than 55 years on 1 March 202 can choose to have their benefits accumulated before 1 March 2021 plus interest on that benefit, paid as a cash lump sum, when they retire. However, only one-third of the benefit accumulated after 1 March 2021 can be paid as a cash lump sum and two-thirds must be used to purchase a pension. If the benefit accumulated after 1 March 2021 is less than R247 500, the member can choose to be paid the total/full benefit as cash lump sum.
  • (Category E members may only take only one-third of the benefit as a cash lump sum and two-thirds must be used to purchase a pension. If the benefit accumulated is less than R247 500, the member can choose to be paid the total/full benefit as cash lump sum)
Unclaimed Benefits List March 2021

Retrenchment benefits

Your fund credit will be paid as a lump sum.


Smallest of: Normal retirement age (65) minus actual age X 8% X fund credit or Fund Credit

Housing loans

The fund understands the need for housing and issue housing loan guarantees. The guarantee is limited to maximum of 60% of the member’s fund credit as a collateral through a specific financial credit provider. The loan must be used for housing purposes i.e. renovating of property, purchasing of property and/or a plot and for the settlement or partial settlement of an existing bond.

Absa Workplace Benefit

ABSA offers NFMW - members financial service solutions, which include exclusive discounts on vehicle finance, home loans and personal loans. For more information contact Workplace Banking Direct on 0860 556 556. Remember your NFMW membership card or latest benefit statement when engaging with ABSA and to quote the NFMW group scheme code: 10682. Terms and conditions apply.

Sanlam Reality Access Loyalty Programme

NFMW-members automatically qualify for benefits and savings through the Sanlam Reality Access loyalty programme which rewards members for living a financially responsible life. Benefits include funeral support, legal assistance, emergency medical support, trauma, assault and HIV assist, discount coupons, online calculators and tools. Contact 0860 732 548/9 for more information on how to access these and other exclusive lifestyle benefits.