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What We Do

The Botswana Pension Society is a non-profit making corporate body registered in 1994.

 

Their objectives include acting as a forum for all groups with a direct involvement in retirement schemes and to provide a general means of consultation and discussion between the different
 disciplines represented in the industry on matters of common concern.

 

The Society acts as a lobby group in respect of any legislative, tax or other matter which affects the retirement industry; it promotes awareness amongst members as to their rights and responsibilities and demonstrates the benefit of retirement schemes to employees, employers and to the economy of Botswana.

 

The main information sharing events are the Annual Conference – which attracts all industry players – and has been running consistently since 2006 and the Member Awareness Seminars which are held mainly outside Gaborone where access to information tends to be limited. This event has been running since 2008 and has so far covered Francistown; Maun; Ghanzi and Palapye. These events are fully funded by the society and are only open to members of participating pension schemes of the Society.

 

 

Why Retirement Planning

 

The main purpose of a retirement fund is to provide you with benefits when you can no longer provide for yourself financially or to provide benefits to your dependants following an untimely death. It provides an income when one can no longer be employed and is payable from the date of retirement until death.

 

 

History of Retirement Funds

 

The late 1700’s saw the developments of the Industrial Revolution.

Industries were hungry for people to come and work thus causing a rural / urban shift in employment patterns. There was the move from subsistence to cash economy and the resultant need for income in old age

 

The forty four years of Independence achieved by Botswana is also a reminder of forty four years away from the pre cash economy when subsistence farmers reared livestock and tilled the soil. Families were characterized by many children to provide labour on the farms and care, when older, for their aged parents.

 

Similar to the developed world, Botswana has witnessed a gradual move from subsistence to a cash economy. The traditional rural family support structures have been abandoned. Aged parents have to look to the government for support as urban children (faced with high costs of urban lifestyles) fail to provide any support.

 

With little training in money management workers spend their working lives accumulating very little and having insufficient savings for retirement. The government then realized the need for the provision of long term security for workers, through institutionalized savings, having worked the whole of their lives in the cash economy.

 

The development of the Retirement Funds Industry in Botswana by the government was necessitated by a need to provide solutions to the challenges faced by Batswana in their old age.

 

Registration

 

Registration of Pensions and Provident Funds is a statutory requirement to enable the Government to monitor the scheme for the protection of its members. Once registered a retirement fund attains its own legal status from that of the employer and can sue or be sued.

 

The Board of Trustees, comprising both management and staff representatives, is elected to manage and monitor the progress of the scheme. They are responsible for the appointment and removal of service providers depending on their performance.