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Pension payouts for retired soldiers start amidst legal dispute

BDF  soldiers. PIC PHATSIMO KAPENG
BDF soldiers. PIC PHATSIMO KAPENG

Government has begun crediting the accounts of retired Botswana Defence Force (BDF) soldiers and their beneficiaries, despite unresolved differences and an ongoing legal dispute.

According to a recent communication from the Ministry of Defence and Security, payments of recalculated pension benefits commenced on August 15, 2024. However, the development comes amidst an ongoing case in which the retired soldiers aren't happy about what they are being offered. The retired soldiers are suing the government for transferring their pension to the Botswana Public Officers Pension Fund (BPOPF) without their consent. In the class action case, the former military personnel argue that it was illegal and unlawful contrary to the provisions of the BDF Act and its regulations for their pensions to have been transferred to BPOPF without their consent.

The case is scheduled for September 18 for case management following a recent deadlock from failed negotiations that were meant to settle the case out of court. On the other hand, the commencement of payment is said to have been made possible by those who opted to sign consent forms to be paid as government recently announced that it had secured P1.5 billion to be used for settlement. In a brief interview, ex-soldier and representative of ‘A re Itshekeng’, Brigadier Mabe Gaborone, confirmed that they are still going ahead with the court case despite the government announcing commencement of payments. "We saw the announcement but I can confirm that we are still going to court because our issues have not yet been resolved as you know we recently have collapsed settlement talks," he said. Gaborone explained that those being paid consented as they signed forms despite not being happy with what they were being offered.

He said that many people don't understand that the government is failing to fulfil its promises and is just fronting to make it seem like it is really paying the masses. "This is just a front, even some of us on the court case signed the consent forms because we were promised what we sought and that isn't happening therefore we can't accept that. Those who are getting paid will be paid but we are still going to litigate," Gaborone said. Gaborone added that they feel like their grievances are not being taken seriously as even government decides to make decisions without any communication despite knowing that they have failed to agree on certain terms. Meanwhile, the government on the other hand is reportedly at work paying the long waiting list of retired soldiers and their beneficiaries. In a recent press release from the Ministry of Defence’s Permanent Secretary, Pearl Ramokoka, it was stated that the payments resulting from recalculations of BDF members' transfer values using the new denominator commenced on August 15, 2024.

"On that note, it is important that recipients are made aware of what they are receiving and what more they can expect going forward. The first set of payments are being made by the Accountant General and comprise gratuity enhancement portion for all qualifying former members who are also members of BPOPF," she said in the release. Ramokoka explained that the rest of the outstanding transfer value differential will be recalculated and paid by the BPOPF in accordance with the existing BPOPF Rules and the amended Income Tax Act, of 2024, which means that recipients will have the option to access up to 50% of their gratuity and may purchase an annuity with the other 50% if it meets the minimum threshold.

She said the Accountant General is also paying the full package including enhancement, gratuity and pension arrears for former members who remained in the old pension scheme. "In addition, they will also continue to receive their improved monthly pension as has been the norm. BPOPF will commence payment of transfer value differentials as per the advice notes they continue to share with their members whose benefits have been recalculated," the Permanent Secretary said. On the disposal of death benefits, Ramokoka revealed that administration of the disposal of death benefit questionnaire will also commence shortly and those affected will be contacted directly.

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