NBFIRA and Ministry of Finance discuss the Retirement Funds Bill 2022 on BTV’s Topical Updates Programme

On September 29, 2022, Ms. Patrinah Masalela, Director of Insurance and Pensions at the Ministry of Finance and Mr. Phineas Sesinyi, Acting Director of Retirement Funds at the Non-Bank Financial Institutions Regulatory Authority appeared on BTV’s Topical Updates Pogramme where they unpacked key aspects of the Retirement Funds Bill 2022, which was passed in Parliament in August 2022 and is awaiting commencement. The duo’s objective was to inform and remind the public about the purpose of a pension and to provide clarity on some aspects of the Bill that relate to enhanced withdrawals.

Ms. Masalela commenced the interview by defining a pension and its purpose which is to provide an individual with income in their retirement years or when they are no longer actively productive. She then elaborated on the types of pensions available in Botswana, namely state, occupational and private pensions. She emphasised the importance of pension fund members knowing the type of membership they have be it active, deferred or pensioner.  She explained that withdrawal clauses in the Bill were predominantly enhanced for deferred members as the Government assessed them to have been the most affected by recent economic challenges that were exacerbated by Covid.

For his part, Mr. Sesinyi summarised the proposed concessions for deferred members as being for the purposes of paying a loan, mortgage or medical expenses relating to a terminal illness. He also clarified the conditions that must be met in order for a deferred member to access the enhanced encashment. Mr. Sesinyi further explained that active members will also receive some relief upon resignation or transfer from one pension fund to another as well as upon retrenchment or dismissal. For context he added that occupational pensions make up approximately 45 percent of the local workforce and that pensions are not yet compulsory in Botswana.

The duo answered question from members of the public on the topic and in conclusion Ms. Masalela indicated that the development of regulations is currently underway and the commencement date of the Act will be announced to the public in due course.

Watch the full interview on our Facebook Page. https://www.facebook.com/MoFBW/videos/6035043089858574