Jun 2019
NFMW-greetings
Great news! Improved benefits and a reduction in risk cover costs with effect from 1 July 2019.
The fund understands the impact that high cost can have on a member's retirement savings and therefore always endeavours to keep it to a minimum.
After performing the annual review of the death, disability and funeral benefits, the fund was able to increase the funeral cover benefit and at the same time reduce the risk cover cost! This cost saving on the risk cover benefits and the administration cost which remains at only 0.5% of pensionable salary, translate to more of our members' contributions going towards their retirement savings.
With effect from 1 July 2019 members will also have the option to elect no death and disability cover in the fund, (Category A0 and C0), irrespective of their age. It is important that members make informed decisions when electing no cover, taking into account their own personal circumstances, financial dependants, cover with another insurer, but most importantly that they consult with a qualified financial advisor.
The fund will also be introducing a loyalty programme which rewards members for living a financially responsible life. Benefits will include funeral support, legal assistance, emergency medical support, trauma, assault and HIV assist, discount coupons, online calculators and other exclusive lifestyle benefits, but more on this in the next edition.
Enjoy reading and remember, we are always here to help if you need any information or assistance with any fund-related matter.
Kind regards
Sean Samons
Principal Executive Officer
REDUCTION IN RISK COVER COSTS!
Risk cover costs are deducted monthly from the employer contributions and are determined by the risk cover category elected. Members have the option to change their risk category twice a year effective 1 January and 1 July and when their personal status changes. Medical underwriting may be required. The cost of the death and disability cover will reduce effective 1 July 2019, which means more of the monthly contributions will be allocated to the members' retirement savings. The reduced risk cover costs are provided below.
| Category | Death Cover | Disability Cover |
|---|---|---|
| Category C (Main fund) | ||
|
C1 Total cost reduces from 1.187% to 1.114% |
1 x Annual Pensionable salary + fund credit | 1 x Annual Pensionable salary + fund credit |
|
C3 Total cost reduces from 2.946% to 2.740% |
3 x Annual Pensionable salary + fund credit | 3 x Annual Pensionable salary + fund credit |
|
C5 Total cost reduces from 4.090% to 3.905% |
5 x Annual Pensionable salary + fund credit | 3 x Annual Pensionable salary + fund credit |
|
C0 Only funeral cover cost 0.293% |
No cover. Fund credit becomes payable | No cover. Fund credit becomes payable |
| Category A (2%-fund) | ||
|
A100 Total cost reduces from 1.231% to 1.154% |
1 x Annual Pensionable salary + fund credit | 1 x Annual Pensionable salary + fund credit |
|
A0 Only funeral cover cost 0.075% |
No cover. Fund credit becomes payable | No cover. Fund credit becomes payable |
IMPROVED FUNERAL BENEFITS EFFECTIVE 1 JULY 2019!
All members and their qualifying family members are covered for the funeral benefits, irrespective of the risk cover category elected. The funeral cover will increase with effect from 1 July 2019 at no additional cost to the member.
| QUALIFYING DEPENDANTS | CATEGORY C COVER | CATEGORY A COVER |
|---|---|---|
| Main member | Increased from R44 000 to R48 500 | Increased from R11 000 to R11 500 |
| *Qualifying spouse/Life partner | Increased from R44 000 to R48 500 | Increased from R11 000 to R11 500 |
| Qualifying child 6 years and older (above 21 years of age must be a full-time student, unmarried and/or disabled) | Increased from R22 000 to R24 250 | Increased from R4 500 to R4 700 |
| Qualifying child from 26 weeks of pregnancy until 6 years | Increased from R10 000 to R11 000 | Increased from R4 500 to R 4 700 |
Latest Investment Portfolio Performance
| Investment portfolio | May 2019 | Cumulative YTD |
|---|---|---|
| Capital Protector | 0.88% | 7.62% |
| Stable Growth | (1.24%) | 4.62% |
| Capital Growth | (2.91%) | 2.36% |
| Aggressive Growth | (3.51%) | 1.50% |
| Shari’ah | (2.56%) | 2.60% |
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