By Thoboloko Ntšonyane
MASERU – The Public Officers Defined Contribution Pension Fund has reported a significant growth in its assets under management, increasing by 12.96% from M10.8 billion in 2023 to M12.2 billion as of 31 March 2024.
This increase was reported during the Fund’s second Members Engagement Forum, following last year’s inaugural Annual General Meeting (AGM), reflecting a continued commitment to member engagement according to the Fund’s Chairperson, Nthoateng Lebona.
Principal Officer ‘Mamotlohi Mochebelele attributed some of the Fund’s achievements to the collaborative efforts with the members. She also reported the Fund is now in compliance with regulatory standards following its registration with the Central Bank of Lesotho (CBL).
The Fund has received a clean audit for the past financial year and is now registered with CBL.
The Public Officers’ Defined Contribution Pension Fund was established under the PODCPF Act of 2008. It transitioned from an unfunded defined benefit plan to a defined contribution plan wherein such contributions are invested. It covers public officers and those who are at retirement.
Meanwhile, the management costs for the Fund also rose to M66 million this year, a 14.2% increase from M57.9 million in 2023.
In the past financial year, the Fund processed 1,240 claims, paying 1,054 members a total of M428 million. However, over 600 claims remain outstanding, which the Fund promised to address.
Representatives from member associations highlighted specific concerns during the forum. Haleeo Leluma of the Lesotho Police Staff Association (LEPOSA) advocated for a 15% government contribution matched with a 5% contribution from members, noting that this structure aligns with practices in other countries, such as Eswatini and Botswana.
Leluma also raised concerns about disparities between security institutions and called for the Fund to address these issues.
Letsatsi Ntsibolane from the Coalition of Lesotho Public Employees (COLEPE) stressed the need for the Fund to address “nil contributors,” referring to members whom some have ceased to make contribution but are still enrolled in the system.
‘Mathuto Mosenene of the Lesotho Nurses Association urged the Fund to expedite the processing of pensions, emphasizing that delays can have severe personal impacts on retirees.
Currently, the Fund has invested 12.9% of its assets in Lesotho, falling short of the 30% local investment requirement mandated by law. The majority of its investments are in South Africa (SA), accounting for 65.5% of the portfolio, with additional investments spread across North America, Europe, Asia, and other regions.
Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane, reiterated the government’s commitment to supporting the Fund, with M200 million contributed this year and plans to provide similar support annually over the next decade.
The Minister also took a swipe at media reports on alleged Pension Fund misconduct as “propaganda,” urging the press to allow responsible parties the opportunity to address issues. Meanwhile, the Fund’s Board had in some instances faced a challenging session fielding tough questions from the Public Accounts Committee (PAC) regarding amongst others, compliance issues.
She called on the Fund’s leadership to uphold high standards of conduct to maintain a positive image and stressed the importance of this unique pension structure for the country’s public officers.
The Fund serves a membership base of 37,507.