Page 168 - KZN Top Business Portfolio 2018

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

Sam Camilleri
www.njmpf.co.za

INNOVATION AND FINANCIAL LITERACY by superior service. The Natal Joint Municipal Pension/
Provident Fund (NJMPF/Fund) is recognised globally
The NJMPF drives inclusive, transparent, and sustainable for excellence in governance, investments, treating
practices through innovation and financial literacy. customers fairly, financial literacy programmes and
Law makers globally and international regulatory best practices in retirement funding services.
institutions exert a certain amount of stringent The NJMPF is a not for profit organisation, which
authority over financial institutions, particularly provides retirement funding benefits for municipal
retirement funds because of the funds they hold. employees in KwaZulu-Natal. These employees are
Whether these laws reduce or add value for employed at 55 municipalities in the Province. The
stakeholders, the general perception is that as laws NJMPF’s vision is to provide superior retirement
change and become more stringent, costs also services and benefits to the 20 000 active members
escalate, and room for innovation and creativity is in and 10 000 pensioners and beneficiaries making up
some instances reduced. One organisation is leading its membership.
the pack and offers a global example of what is meant
Research Findings
There are several surveys published in South Africa and
worldwide on the state of the population’s attitudes
and readiness for retirement. The results have tended
to be consistent. For example, a survey conducted
of South African households some time back was
performed on a representative sample of 65-year-
olds. The following facts were uncovered; 47% were
dependent on relatives, 31% were forced to continue
working, 16% were dependent on a state pension, and
6% were financially independent. In recent studies, this
situation has not significantly shifted perhaps due to
inflation rates, taxation and cost of living increasing
– Source: The South African Financial Planning
Handbook 2018.
Coupled with the above challenge is the issue of
low financial literacy levels. According to a study
by the Organisation for Economic Co-operation
and Development (OECD), South Africa nears the
bottom of the financial literacy class. The OECD/
INFE International Survey of Adult Financial Literacy
Competencies questioned 50 000 people aged
between 18 and 79 and found that, on average, only
56% of adults across the 30 participating countries
achieved a score of at least five out of seven, the

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