The history of NJMPF
The KwaZulu-Natal Joint Municipal Pension/Provident Funds (NJMPF) drives inclusive, transparent and sustainable practices through innovation and financial literacy. NJMPF was founded through an ordinance of Natal in 1942 (South Africa, KwaZulu-Natal, Durban) and has been in existence for over 75 years. The NJMPF was founded to provide financial security for municipal employees in the Province of KwaZulu-Natal as a vehicle for their retirement savings. The NJMPF is a self-administered, non-profit organisation and is responsible for three retirement funds, namely; the KwaZulu-Natal Joint Municipal Pension Fund (Superannuation), KwaZulu-Natal Joint Municipal Pension Fund (Retirement), which are both Defined Benefit Funds as well as the KwaZulu-Natal Joint Municipal Provident Fund which is a Defined Contribution Fund. The Fund has a total of 30 000 members which include active members, beneficiaries and pensioners. Of the total membership, 20 000 active members are spread throughout KwaZulu-Natal in 55 Municipalities within 10 Districts.
The most awarded fund in South Africa
The NJMPF has achieved excellent short and long-term investment performance, which has enabled the Fund to increase and improve benefits to members and pensioners. The Fund has continued to keep abreast of the changing landscape of the retirement fund industry. NJMPF has gained recognition for consistent excellence in, amongst others, governance, communication, education and training, treating customers fairly, top quartile investment performance, financial soundness and superior retirement services and is the 'most awarded pension fund’ in South Africa. Internationally and locally, NJMPF has distinguished itself as a pension fund where ’best practice’ is keenly embraced and has become part of its culture.
Tackling debt and financial illiteracy
In recent years, NJMPF teamed up with the National Credit Regulator (NCR) as it has recognised that within its own membership, members are burdened with debt. Partnering with the regulator allows for leveraging expertise on credit/ debt management education and educating NJMPF members at no cost. NJMPF has also partnered with the Financial Sector Conduct Authority and the Office of the Pension Funds Adjudicator and a law firm to educate stakeholders about issues relating to financial literacy.
Global financial literacy levels are low and many people around the world lack the ability to understand essential financial concepts in making informed decisions about saving, investing and borrowing.
Pension products are expensive and, in many cases, confusing. The excessively high cost of retirement products (such as living annuities and preservation funds) make it difficult for low income earners to purchase these products and secure an income during retirement. The new regulations in the South African retirement industry place an obligation on the trustees of retirement funds to offer default options to members. The NJMPF has created a living annuity product which is tailormade for the members. The product is inexpensive and easy to understand.
The NJMPF is a member-centric organisation and is on a mission to improving retirement outcomes for all members. The low-cost in-house annuity was put in place to improve members lives by offering them an income stream once they have retired at low cost.
Life expectancy has risen in recent years and people need a product that will last all the days of their lives.
The NJMPF’s living annuity is one of the most affordable retirement annuities in South Africa. The NJMPF allows members to have peace of mind throughout retirement by receiving a regular income at an affordable administration rate. The NJMPF’s living annuity assists members plan for a successful retirement.