Dear NFMW-member,

Recently we have seen some exciting new developments unfolding within the pension and retirement fund industry, as well as within the NFMW in terms of our strategic positioning, improved member service and other benefit offerings. Articles on the Retirement reform and the default regulations were published in the media and in the communication issued by the Fund.

The default Regulations of the Pension Funds Act state that for all retiring members, a retirement fund should have an annuity strategy with annuity options. An annuity provides an income over a certain amount of time to an individual after retirement. The regulation states that such annuities should be appropriate for members, well communicated and offer good value for money. As such, the regulation requires that members of pension and retirement funds need to be protected and given the best support pre and post-retirement in this regard.

Supporting you in line with best practices and regulation

The NFMW recently embarked on a strategic assessment of how our members should be supported and be informed about retirement (counselling services) and how to empower them to make sound financial decisions through proper financial planning and advice.

We are pleased to announce that as an NFMW member, you will now have access to retirement counsellors and financial advisors to assist you on your journey towards, and during your retirement! This service will assist in providing you with a better understanding of the retirement landscape, and address any uncertainties you might have on when you should be acting or what you should be doing, to plan your retirement or to financially organise your life.

As such, we want to empower and assist you to make the right decisions, on time, all the time.

The Fund has appointed INfund Solutions and Portfolium to provide NFMW-members with such retirement counselling and financial advice services, respectively.

This unique approach will target ALL members from a young age (not only those close to or approaching retirement).

Portfolium is an authorised financial services provider that will assist all our members with any financial advice or financial planning needs that they may have. Their task is mainly to compile a comprehensive and holistic financial planning and/or retirement planning proposal for all members at an early stage, through their network of professional financial advisors.

The comprehensive and holistic financial planning includes:

• setting retirement objectives;
• matching your needs with appropriate investment portfolios;
• enhancing savings and promoting optimal use of discretionary funds (cash);
• carrying out annual reviews and sustainability monitoring of income relative to retirement capital;
• giving appropriate tax advice;
• assisting you in structuring or restructuring your personal finances for you to achieve your life and retirement goals; and
• assessing your financial progress over time.

INfund Solutions

INfund Solutions will provide “Retirement Benefit Counselling” services as proposed in Regulations 37, 38 and 39 of the Pension Funds Act. This broadly means that they will be responsible for all retirement counselling services to members. They will do so through various education and communication initiatives and through various channels which will highlight and inform you of the options available and permitted in terms of the Rules of the Fund and legislation.

All communication will take place within co-operation with the Fund’s established communication channels and facilitators. The most important aspects for which they will take responsibility include:

• retirement benefit counselling to all NFMW members;
• explaining the Fund’s default annuity options and investment strategies; and
• providing information on paid-up and preservation options.

Are there any other changes that you need to know about?

As a result of the changes, the Fund’s own in-fund living annuity has been discontinued and is no longer available as an option to members from 1 April 2022. This fits in with the Fund’s long-term strategic plan as various regulatory risks are mitigated by this action, which leaves only the best options open for members. Please note that the discontinuation of the in-fund annuity (income paid from the Fund) is only applicable to those individuals who have already retired and are receiving income from the Fund. It is not relevant to current/active members.

What can we expect going forward?

We are extremely excited about the new partnership with Portfolium and INfund, which establishes a customised financial advice and retirement counselling service offering to all members of the NFMW. This approach will have long-term results that may arguably provide the best retirement outcomes for all our members. The NFMW is proud to be at the forefront of innovation whilst the rest of the industry slowly adapts.

We trust and expect that members will be educated and advised on retirement planning, assisted to achieve their financial and life goals and informed of their options throughout their working lives. Members will also benefit from innovative and cost-effective default annuity options for many years to come!

Walking with you on your financial and retirement journey, in a new way!

Yours sincerely

Mr Leslie Ndawana
Principal Executive Officer.