Dear NFMW member,
The NFMW has previously communicated on the proposed rationalisation/restructuring of Local Government retirement funds which will allow members to move to the fund of their choice and take up membership at that fund. Retirement funds will be required to undergo an accreditation exercise to ensure that they meet the criteria as set out by the South African Local Government Bargaining Council (SALGBC). The Local Government retirement funds sector restructuring/rationalisation is meant to ensure that members receive value for their contributions and save as much as possible towards their retirement. This process is also meant to ensure that all retirement funds are properly governed and that retirement funds put the interest of members first.
The NFMW supports the proposed 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, practise good governance and responsible investing in order to provide members with desirable retirement outcomes.
As the largest fund in Local Government, our more than 54 000 members are at the centre of what we do, our decisions, our behaviours, and the strategies we employ to manage the fund. The NFMW’s purpose of existence is to financially secure our members’ future.
The NFMW supports and will partake in the accreditation process as the criteria pose no threat to well-managed and cost-effective funds, like the NFMW. Rather, this provides funds like 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.
The earliest anticipated implementation date for the window period during which members will be allowed to move from one fund to another is still to be confirmed. A detailed fund comparison on costs, benefits and investment performance will be made available so that members and potential members can compare accredited funds before deciding on which fund to participate in or transferring between funds. We will, as always, ensure that you are updated on any new developments in this regard.
We look forward to continuing to serve our members beyond the rationalisation exercise. We urge you to share this communication with your colleagues in municipalities.
Principal Executive Officer