Gov’t commits to ending long-running BDF pension dispute
Pini Bothoko | Wednesday August 26, 2026 06:00
This was revealed by Minister of State President, Defence and Security, Moeti Mohwasa last Thursday when updating on the BDF pensions. He explained to Members of Parliament that the longstanding issue dates back to 2001 when the military transitioned from a Defined Benefit Scheme to a Defined Contribution Fund to align with the then recently established Botswana Public Officers Pension Fund (BPOPF). The transition, which shifted the retirement structure, also triggered long-running legal battles and class-action lawsuits regarding transfer values and benefit calculations Last week, Mohwasa revealed that a government-commissioned actuarial study conducted in 2017 found that the pension arrangement had disadvantaged BDF personnel as it failed to adequately take into account their mandatory early retirement.
He said the study established that the pension denominator applicable to BDF members should have been adjusted from n/600 to n/375, in line with the adjustment made to the public service pension denominator from n/720 to n/450 in 1998. The lower the denominator, the higher the pension benefit and in March 2024, government consequently resolved to enhance the transfer values of BDF members who were in service before April 1, 2001. Statutory Instruments 52 and 53 of 2024 were subsequently issued to facilitate the payment, backdated to January 1998.
Mohwasa stated that government teams were dispatched countrywide to update records, verify identification and banking details and collect information relating to deceased members. During the exercise, a total of 5,767 separated members and beneficiaries of deceased members initially registered and submitted the required information. Following verification by the Accountant General and actuarial calculations by National Medical Group (NMG), the number of BDF members now projected to be eligible has increased to 8,951. As of August 14, NMG had received 5,979 files from the Accountant General and had paid 4,725 claims, representing about 79% of confirmed eligible veterans. Those paid include 4,436 retirees, 255 beneficiaries of deceased members and 34 former members who withdrew or resigned.
Mohwasa said government has committed to completing payments to all living eligible veterans by the end of September, while payments involving deceased veterans are expected to be completed by the end of the year due to estate administration processes. “The BDF Pensions matter is a longstanding and sensitive one. While concerned parties have every right to raise their apprehensions, I appeal for continued patience and good faith as Government works through the legal and administrative processes required to reach a durable resolution,” he added.
“The complexities surrounding the transfer of BDF members to the BPOPF present a challenge that requires thorough assessment, data-driven decisions, due diligence and the avoidance of emotive pronouncements.” The total cost of the exercise is projected at P4.1 billion, with government having had already released P2.7 billion. However, Mohwasa said the pension controversy extends beyond the n/375 payments. Meanwhile, a group known as the “Forgotten Soldiers” who were transferred from the old Defined Benefit Scheme to BPOPF while already receiving monthly pensions, have raised concerns that they were moved without their consent. Mohwasa however said there was currently no evidence of transfer consent or records showing the transfer values used in their migration to BPOPF.
He has therefore instructed BPOPF to recalculate their transfer values, with the exercise expected to be completed by the end of August. Another unresolved issue concerns veterans who are required by law to purchase annuities rather than receive their entire pension benefits as a lump sum. So far, 182 members have been required to purchase annuities, while 56 have rejected the arrangement and are seeking full payment because of their advanced age and financial needs. Mohwasa said government was seeking a legally sound solution, with the Ministry of Finance engaging the Attorney General on possible options.
Meanwhile, negotiations are continuing between government and a group of veterans who are challenging their migration to BPOPF in court. An independent actuarial assessment has been commissioned from Alexander Forbes Financial Services Botswana to compare what affected veterans would have received under the old BDF Defined Benefit Scheme against their benefits under BPOPF, including the n/375 enhancement. The Minister said the assessment would inform Government’s decision on the future pension arrangements for BDF members.
He also revealed that government intends to introduce a BDF Act Amendment Bill aimed at addressing some of the longstanding pension-related challenges. Mohwasa appealed for patience, saying government remained committed to correcting historical administrative shortcomings and finding a durable solution to the BDF pension dispute.