Dear valued member
The Fund understands the impact that high costs can have on your savings towards retirement and therefore endeavors to always keep these costs to a minimum. Our commitment to ensuring that our members receive the best value for their money also means that we are constantly looking for ways to improve our overall member value proposition.
We are excited to announce that from 1 July 2023 there will be an overall reduction in the risk cover cost, this includes the cost for death, disability and funeral cover. Less of the monthly contributions will go towards cost and more towards your retirement savings. The funeral benefit that is payable in the case of your death or the death of a qualifying family member will also increase with effect from 1 July 2023.
Read about these exciting changes below or watch the video!
REDUCTION IN DEATH AND DISABILITY COVER COSTS
Risk cover costs are deducted on a monthly basis from the employer contributions and calculated as a percentage of the member’s pensionable salary. The risk cover costs, and the death and disability benefit payable (see Fund brochures) are determined by the Risk Cover Category elected. The reduced risk cover costs, effective 1 July 2023 for each of the Risk Cover categories are provided below:
| Category | C1 | C3 | C5 | A1 | A2 | A3 |
|---|---|---|---|---|---|---|
| Death benefit cost | 0.55% | 1.65% | 2.75% | 0.70% | 1.40% | 2.10% |
| Disability benefit cost | 0.15% | 0.45% | 0.45% | 0.10% | 0.20% | 0.30% |
| Total risk cover costs from 1 July 2023 | 0.70% | 2.10% | 3.20% | 0.80% | 1.60% | 2.40% |
| Reduction in risk cover cost | (15%) | (14%) | (11%) | (26%) | (26%) | (24%) |
IMPROVED FUNERAL BENEFITS
All members and their qualifying family members are covered for the funeral benefit, irrespective of the risk cover option elected. The funeral cover cost will reduce from 1 July 2023 and the benefits will increase as follows:
| CATEGORY A Funeral cover cost reduced from 0.104% to 0.094% |
CATEGORY C Funeral cover cost reduced from 0.409% to 0.368% |
|
|---|---|---|
| Main member | R14 000 | R58 000 |
| Qualifying spouse/life-partner* | R14 000 | R58 000 |
| Qualifying child 6 years and older (above 21 years of age must be a full-time student, unmarried and/or disabled) | R14 000 | R28 500 |
| Qualifying child from 26 weeks of pregnancy until 6 years | R5 800 | R13 000 |
*Members must ensure that their life-partners are registered with the Fund, by completing and submitting the Application for Registration of a Life-partner-form in order to qualify for the funeral benefit.
2023 TRUSTEE ELECTIONS
The NFMW will be conducting trustee elections to fill three vacancies on the Board of Trustees, effective 1 November 2023. There are two vacancies in Gauteng and one in Mpumalanga. NFMW-members employed at participating employers within these provinces may participate in the elections. Please be on the lookout for more information on the elections that will be communicated in the upcoming weeks.
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