MUNICIPAL COUNCILLORS PENSION FUND
A PROGRESSIVE FUND CATERING FOR THE NEEDS OF ALL MUNICIPAL COUNCILLORS
T
he Municipal Councillors Pension Fund is an autonomous body exclusively designed to cater for Municipal Councillors. All municipalities can participate in the Fund, and contributions are made in accordance with the MCPF Fund Rules in conjunction with the Pension Fund Act and subsequent government notices. Member contributions are invested in a diversified portfolio to ensure members’ retirement savings grow as much as possible. The Fund invests in different asset classes such as cash, bonds, property, and international investments. We spoke to (Acting) Principal Officer and Company Secretary, Mr Elias Msiza, about the Fund, its investment strategy that garners maximum returns, and the Funds investment philosophy to provide members with the best possible benefits on retirement. Can you please provide us with an overview of the Fund, focussing on its membership requirements, and how it is managed? EM: The Municipal Councillors Pension Fund (MCPF) was established on 1 May 1988 in terms of the Pension Benefits for Councillors of Local Authorities Act 105 of 1987. On 1 December 2000, the Fund was restructured to a Defined Contribution Umbrella Fund that caters specifically and exclusively for councillors of all South African municipalities. All councillors of participating municipalities, irrespective of their age and political affiliation, are entitled or permitted to become members of the Fund.
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Municipal Focus
(Acting) Principal Officer and Company Secretary, Mr Elias Msiza
The Fund has been in existence and catering for the retirement needs of councillors for 34 years. Our vision of providing a reliable and sustainable Fund for our members, as well as our mission to provide members with the best possible benefits that give them the maximum return on investments through the management of the financial contributions of municipalities and members, has always been the driving force of the Fund. Currently, 60% of all councillors in South Africa belong to the Fund. This equates to an amount of 5 600
members, and a majority of the market share in local government. This shows the confidence that councillors have shown over the years in the value that MCPF investments deliver. The MCPF is also highly recognised by the employer body, the South African Local Government Association (SALGA), and in terms of the Rules it is managed by its members through their nominated representatives from all nine provinces. The Board is constituted by 13 trustees – one from each
