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KWAZULU-NATAL JOINT MUNICIPAL PENSION/
PROVIDENT FUNDS (NJMPF)

Sam Camilleri
www.njmpf.co.za

INNOVATION AND FINANCIAL LITERACY Coupled with the above challenge is the issue of
low financial literacy levels. According to a study by
The KwaZulu-Natal Joint Municipal Pension/Provident the Organisation for Economic Co-operation and
Funds (NJMPF) drives inclusive, transparent and Development (OECD), South Africa nears the bottom of
sustainable practices through innovation and financial the financial literacy class. The OECD/INFE International
literacy. Survey of Adult Financial Literacy Competencies
questioned 50 000 people aged between 18 and 79 and
Lawmakers globally and international regulatory found that, on average, only 56% of adults across the 30
institutions exert stringent authority over financial participating countries achieved a score of at least five
institutions, particularly retirement funds because of out of seven, the minimum target score. South Africa
the funds they hold. Whether these laws reduce or add barely reached the 30% score.
value for stakeholders, the general perception is that
as laws change and become more stringent, costs also In a retirement funding perspective, retirement funds
escalate, and room for innovation and creativity is in should advance the core business objective, while
some instances reduced. One organisation is leading simultaneously developing systems to enhance
the pack and offers a global example of what is meant members and communities through creativity and
by superior service. The NJMPF is recognised inter- collaboration without incurring excessive costs.
nationally for excellence in governance, investments, This view that drives plans and projects is motivated
treating customers fairly, financial literacy programmes by team work, passion, strategic oversight, clear
and best practices in retirement funding services. and proper communication and education, placing
members at the core of decision making
The NJMPF is a not for profit organisation, which
provides retirement funding benefits for municipal The competitive edge for the NJMPF is providing
employees in KwaZulu-Natal. These employees are superior service to stakeholders at low fees and
ensuring high investment returns which increases
employed at 55 municipalities in the Province. The members retirement benefits.
NJMPF’s vision is to provide superior retirement
services and benefits to the 20 000 active members Innovation
and 10 000 pensioners and beneficiaries making up Using technology to lower fees is critical for a retirement
its membership. funding service and its members. Experts believe that as
Research Findings entities have grown and complexity, specialisation, silos,
and ultimately hierarchy have choked off the capacity
There are several surveys published in South Africa and to readily adapt and innovate. Finding innovative ways
worldwide on the state of the population’s attitudes to enhance and accelerate member participation in the
and readiness for retirement. The results have tended retirement funding arrangement is important.
to be consistent. For example, a survey conducted of
South African households was performed many years The NJMPF is introducing a barcoded ballot voting
ago on a representative sample of 65-year olds. The system for election of the Board of Trustees. The
following facts were uncovered; 47% were dependent NJMPF is among a few if not the only South African
on relatives, 31% were forced to continue working, retirement fund to provide a barcoded voting system
16% were dependent on a state pension, and 6% were in-house for the election of Trustees.
financially independent. In recent studies, this situation Some of the most recent innovations introduced by
has not significantly shifted - perhaps due to inflation the NJMPF is an interactive webpage to promote
rates, taxation and cost of living increasing - Source: information sharing and a mobile application was
The South African Financial Planning Handbook 2019. created to promote education and communication.
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