Profile
The Municipal Councillors Pension Fund (MCPF) was established on 01 May 1988 in terms of the Pension Benefits for Councillors of Local Authorities Act No. 105 of 1987.
The MCPF is a Defined Contribution (DC) Pension Fund, as defined in legislation, committed to effectively and efficiently providing benefits to members and beneficiaries.
Almost all of the 283 municipalities from all 9 (nine) provinces in South Africa and approximately 7000 councillors from these municipalities are members of the MCPF.
The MCPF is an autonomous body managed by a Board of Trustees consisting of 9 provincially elected members (Councillors) plus 2 appointed councillors from the South African Local Government Association (SALGA).
Members of the Board (Trustees) serve for a term of 5 years coinciding with the municipal term of office as would be applicable at the time.
The Chairperson and Deputy Chairperson of the Board are elected by members of the Board. Trustees of the MCPF perform their responsibilities in terms of the Pension Funds Act (No. 24 of 1956), the Income Tax Act No. 58 of 1962 and other applicable legislation.
Contributions
Contributions are made in accordance with the Remuneration of Public Office Bearers Act No.20 of 1998 and subsequent Government Notices that get issued in this regard from
time to time.
| Contributions | |||||
| Member | = 13.75% | ||||
| Council | = 15.00% | ||||
| Total | = 28.75% | ||||
| Member's share account (fund credit) is completetd as follows | |||||
| a. | Own contributions | 13.75% | |||
| b. | Portion of council’s contributions *Minus risk benefits and costs Allocation to member | 15.00% - 6.00% 9.00% | 9.00% | ||
| c. | Plus interest and investment returns Total Fund Credit | 22.75% _ x.xx _ x.xx ====== | |||
| All Benefits are taxable | |||||