18 Aug 2022

Members of Parliament have unanimously supported the Retirement Funds Bill 2022, which was tabled on a certificate of urgency by finance minister, Ms Peggy Serame on Monday.

Ms Serame said the bill would re-enact the repealed Retirement Funds Act 2003 by, amongst others, allowing members to access their deferred pensions to repay defaulted mortgage loans for principal homes. She also said the bill provided for payment of medical expenses using deferred pensions in case of terminal ailments, and an increase of encashment from one third to 50 per cent.

Boteti East MP, Mr Sethomo Lelatisitswe said increasing the encashment ceiling would provide an opportunity for pensioners to use their pensions for profitable investments. 

He also said it could encourage workers to retire early and start businesses using their pensions.

Another legislator who supported the bill was Nkange MP, Dr Never Tshabang, who said it was good to increase encashment funds and afford retired workers the opportunity to use their pensions while still able. 

Dr Tshabang, however, said pensioners should also be allowed to use their deferred pensions for more investments instead of only on medical expenses and defaulted loans. He also called for timely processing of pensions after employees retired.

While he supported the bill, Jwaneng/Mabutsane MP, Mr Mephato Reatile, expressed concern that it had left out some pertinent issues that workers had proposed. He said workers wanted to be allowed to use their pensions as security to acquire loans and make investments before they retired.

“This issue has been left out from the bill, but it was the biggest concern for the people. I don’t think workers are going to be happy about this,” said the MP.

Mr Reatile said the move would serve to deny workers the opportunity to use their pensions on investments that would uplift their lives and make wealth. 

He also said it was wrong to make deferred pensions only available to workers when they suffered from terminal ailments or defaulted on loans.

Nata/Gweta MP, Mr Polson Majaga said giving pensioners the opportunity to invest their pensions while still energetic would result in the generation of more wealth.

“I am, therefore, grateful that this bill has been presented at long last to allow Batswana to use the money they have worked for to develop themselves and this country,” said the MP. ends