Rationalisation of Local Government Retirement Funds

The Fund has previously communicated on the rationalisation/restructuring of Local Government retirement funds and freedom of association which will provide all Local Government employees with the opportunity to move between accredited participating funds during the window period.

The NFMW has always been in support of the retirement funds restructuring exercise, as we believe that members who are locked into funds due to the current restrictions, should be given the freedom to choose retirement funds that are cost-effectively managed and whose management practice good governance and responsible investing to provide members with desirable retirement outcomes.

The freedom of employees to associate (or join) a fund of their choice has been made possible by the adoption of a collective agreement reached between the South African Local Government Bargaining Council and the labour unions IMATU and SAMWU, and the South African Local Government Association (SALGA) that was signed in 2021 as part of the salary increase agreements in the SALGBC.

All Local Government retirement funds were required to undergo an accreditation exercise by 31 January 2022 to ensure that they meet the criteria as set out by the South African Local Government Bargaining Council (SALGBC). We are pleased to confirm that the NFMW participated in the accreditation exercise and that all the information required was submitted to the SALGBC. We are currently awaiting the outcome of the accreditation exercise which will confirm which other funds will be allowed to participate in the upcoming window period.

The Window Period Will Commence 1 July 2022

THE WINDOW PERIOD WILL COMMENCE ON 1 JULY 2022 and employees of ALL Local Government funds will be given the opportunity to move from their current fund and join another accredited Local Government fund, should they wish to do so.

The NFMW will provide detailed information to potential members to enable them to make informed decisions on which fund to participate in or transfer to.

Members who do not wish to transfer to another fund will remain a member of their current fund. Our members can therefore continue to benefit from the NFMW’s superior value proposition, knowing that their fund is properly governed, has competitive costs, has an excellent record of investment performance, and communicates well to its members.

Detailed information pertaining to the window period will be communicated through regular updates in the upcoming months and we urge you to share this communication with your colleagues within the municipality.

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NFMW Our Oppertunity to Grow!

The window period provides the NFMW with an opportunity to grow in membership and assets resulting in a further reduction in costs, improved benefits and even better returns for our members.

Employees are urged to join the NFMW during the window period and start benefiting from economies of scale, good governance, excellent investments and competitive benefits which all lead to better retirement outcomes.

If you are a potential member who is interested in joining the NFMW, please click on the link below to provide us with your contact details: Join the Fund of Choice in Local Government! | National Fund for Municipal Workers, or alternatively be on the look-out for our communications consultants who will assist you to complete the form during their visits to the respective municipalities. We will keep you updated on when you will be able to finalise the transfer from your current Fund to the NFMW.

We look forward to continuing to serve our members beyond the rationalisation exercise!

Mr Leslie Ndawana
Principal Executive Officer.