March 2019

NFMW-greetings

Our aim as a fund is to always keep our members informed about what is happening in the fund, educate them so they understand the benefits they enjoy as members; guide and provide them with the necessary tools through ongoing interaction and equip them to make informed decision to ultimately retire financially sound.

To this extent we have provided you with the latest benefit brochures which contain information about the fund, its benefits, payment options when leaving employment as well as the services we provide. Information on the post- retirement products available is also included for those members who are approaching retirement and have to make the important decision on how to invest their savings.

Things are looking up on the investment front, with positive returns declared on all the fund's member investment portfolios. The latest returns as well as the latest month-end report are also included.

Government's announcement on the possible implementation of prescribed assets, which would force all fund managers to invest in government-approved instruments, has caused concerns with some of our members. At this stage there are no specifics available and it is too early to try and speculate on how this will, or will not affect the fund, if implemented. We will however, as always, ensure that members are updated on any new developments.

Enjoy reading this edition of the mailer and remember, we are always here to help if you need any information or assistance with any fund-related matter.

Kind regards

Sean Samons <br />
Principal Executive Officer

Absa offers you, as a member of the National Fund for Municipal Workers (NFMW), financial service solutions to make your life easier. Read more.

LATEST INVESTMENT PERFORMANCE

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<h2>NFMW POST-RETIREMENT PRODUCTS</h2>

Approaching retirement and need to decide where and how to invest your retirement savings? The NFMW offers post- retirement products!

There are many factors to consider as you are nearing retirement and are faced with the important decision on which product(s) to invest your hard-earned retirement savings in. It can be quite overwhelming and daunting as making the wrong decision can have dire consequences.

The Board of Trustees of the National Fund for Municipal Workers established voluntary post-retirement default options, the NFMW Golden Income With-Profits Life Annuity underwritten by MMI and the NFMW Living Annuity, for members who want to manage their own pension benefits after retirement. In short, it means that members do not have to make use of an external product provider but may instead select an ‘in-fund’ default living or life annuity.

The major advantage for members is a cost benefit, as the management and investment fees on the fund's default options are significantly lower when compared to the products available from external providers (life insurance companies or investment platforms). There will be a low charge for benefit administration services and the investment management fees will be similar to the existing pre-retirement portfolios.

Members can choose a guaranteed income stream after their working life, in the form of a pension payable for life i.e. a guaranteed or life annuity. Alternatively, their income level post retirement can be self-determined by way of a living annuity.

For those members who cannot or do not want to manage their own pension benefits by making use of the in-fund NFMW living annuity, an out-of-fund living annuity designed exclusively for ex-NFMW members is also available.

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