June 2018
A reduction in risk cover cost & improved funeral benefits effective 1 July 2018!
The fund understands the impact that high cost can have on a member's retirement savings and therefore always endeavours to keep it to a minimum.
After performing the annual review of the death, disability and funeral benefits, the fund was able to increase the funeral cover benefit and at the same time reduce the risk cover cost!
This cost saving on the risk cover benefits and the administration cost which remains at only 0.5% of pensionable salary, translate to more of our members' contributions going towards their retirement savings.
Read more on the improved benefits which will come into effect on 1 July 2018, in this edition of the mailer and as always you are welcome to contact us if you need assistance.
Kind regards
Sean Samons
Principal Executive Officer
A REDUCTION IN RISK COVER COSTS
The risk cover costs which are deducted from the employer contributions every month, are determined by the risk cover category elected. Members have the option to change their risk category twice a year effective 1 January and 1 July and when their personal status changes. Medical underwriting may be required.
| CATEGORY | DEATH COVER | DISABILITY COVER |
|---|---|---|
| Category C (Main Fund) | ||
|
C1 Total cost reduced from 1.217% to 1.187% |
1 x Annual Pensionable salary + fund credit |
1 x Annual Pensionable salary + fund credit |
|
C3 Total cost reduced from 3.022% to 2.946% |
3 x Annual Pensionable salary + fund credit |
3 x Annual Pensionable salary + fund credit |
|
C5 Total cost reduced from 4.195% to 4.090% |
5 x Annual Pensionable salary + fund credit |
3 x Annual Pensionable salary + fund credit |
|
C0 (40 years and older) Only funeral cover cost 0.293% |
No cover |
No cover |
| Category A (2% Fund) | ||
|
A100 Total cost reduced from 1.263% to 1.231% |
1 x Annual Pensionable salary + fund credit |
1 x Annual Pensionable salary + fund credit |
|
A0 (40 years and older) Only funeral cover cost 0.075% |
No cover |
No cover |
Total cost includes the death, disability and funeral cover cost effective 1 July 2018.
IMPROVED FUNERAL BENEFITS
All members and their qualifying family members are covered for the funeral benefits, irrespective of the risk cover category elected.
Funeral benefits effective 1 July 2018
| QAULIFYING DEPENDANTS | AMOUNT OF COVER (Category C) |
|---|---|
| Main member | Increased from R42 000 to R44 000 |
| *Qualifying spouse/Life partner | Increased from R42 000 to R44 000 |
| Qualifying child 6 years and older (above 21 years of age must be a full time student, unmarried and/or disabled) | R22 000 |
| Qualifying child from 26 weeks of pregnancy until 6 years | R10 000 |
Did you know? 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.
VOLUNTARY FUNERAL BENEFITS
NFMW-members have the option to make use of any of the voluntary funeral benefits available which include;
- Funeral cover for parents/parents-in-law and extended family members
- Burial packages, structured around your individual needs
- Funeral cover conversion option which allows members to continue with the funeral cover when they resign, are retrenched or retire.
The cover is completely voluntary and the monthly premium is payable directly to the provider. The number of family members you wish to insure , the amount of cover and/or the package you choose will determine the monthly premium payable. Please refer to the brochure and policy document for the cost and the applicable terms and conditions.
INVESTMENT PORTFOLIO PERFORMANCE
| Portfolio | May 2018 | Cumulative YTD |
|---|---|---|
| Capital Protector | 0.42% | 7.54% |
| Stable Growth | (1.61%) | 7.74% |
| Capital Growth | (1.83%) | 6.43% |
| Aggressive Growth | (2.04%) | 5.80% |
| Shari’ah | (0.47%) | 6.75% |
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Month end report and Fund factsheets
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