|The Principal Executive Officer|
|Mr. Thomas Mketelwa –Principal Executive Officer|
Enhanced Member Communication
As an addition to our communication tools, we present the following two models for member convenience:
• Retirement Benefit Counselling – for members about to exit the Fund (retirement) or planning to leave the employ before their normal retirement time (resignation or dismissal). Members are requested to contact the Front Office on 031 322 9001 to book an appointment to speak with the counsellor well in advance before they process their exiting documents with the Human Resources department.
• The Fund recently purchased a vehicle expected to serve as a Mobile Office that is to deliver the Fund services to members at their places of work. To access this vehicle members are requested to contact the Front Office on 031 322 9001 or send an e-mail to email@example.com.
Front Office Update
We are proud to report that our office worked through a testing time of Covid-19 scourge, which guaranteed no interruption to Fund services.
Consequently, we were able to better manage the backlog of the Death Claims distribution process and we also paid specific attention to out Unclaimed Benefits list which has dropped
The Fund remained resilient on longer performance horizons, which resulted in the increase of the Assets Under Management to 20 billion rands. The positive performance was achieved in the midst of short-term losses and gains, throughout the period of the Covid-19 scourge. Latest events have caused the markets to be very volatile, resulting in unpredictable Fund performance. The Fund investment portfolios have remained very stable, even through the recent volatile economic conditions.
Last year the Fund gained two board members, Cllr Thabani Nyawose (Speaker of the Council) and Cllr Sindi Ngcobo, after the exit of Cllr Sipho Kaunda (former Chairperson of the Fund) and Cllr William Mapena (former speaker of the council). Our Fund also wish to present the new Chairperson, Mrs. Sithembile Dlamini who is deputized by Ms Khanyi Gama.
Update on the SALGBC Collective Agreement
The following update must be noted on the SALGA’s process of restructuring of the Retirement Funds:
• All pension funds servicing the Ethekwini Municipality have opted against participation in the accreditation process.
• The Ethekwini council took a resolution that the Municipality would apply for exemption from participating in the accreditation process.
• Retirement Fund Forum of South Africa, Municipal Retirement Organisation (MRO), has lodged a high court case against SALGA, hearing date set for late June.
Two Bucket System
Minister of Finance officially delegated the process of part withdrawal of retirement savings to the regulators in the retirement industry who are to present a working document mid-year back to the minister as a build-up to the amendment of the Pension Fund Act.
Treasury department has presented a proposal on their preferred implementation of the above process which is as follows:
• The expected date of implementation of the act is 01 March 2023.
• As from the above date member contributions would be divided into cashable and non-cashable buckets/pots.
• The member would be able to submit part withdrawal claims on the only cashable part of their retirement benefit.
• Members would be able to draw a once off lumpsum portion of their Funds saved before 01 March 2023.
As a risk mitigation tool on high investment exposure to intangible assets (from investment markets) the Fund is already investigating the possibility of investing in alternative markets, specifically on projects with an impactful community benefit. Internally the Fund is investigating the concept of direct property investment while externally looking into infrastructural, unlisted debt and other private equity opportunities that may arise.
Members are invited to visit our portal for more information on our Fund services. You can access the portal through our website (www.kznmpf.org).
Members are reminded that the Fund has ongoing seminars, we therefore request that you be on the lookout for notices sent via info info and posted via our social media (Facebook & Twitter) and via our website (www.kznmpf.org).
We also invite members to follow us on our socials detailed below.
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