Public Officers’ Defined Contribution Pension Fund

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how does the fund work

CONTRIBUTIONS

The Fund receives monthly contributions from both
the sponsoring employer, the Government of Lesotho,
and its employees, qualifying public officers. These
contributions, calculated as a percentage of the
employee’s monthly salary, are set aside for future
retirement benefits.

INVESTMENTS

The contributions are strategically invested in a diversified
portfolio of assets, including money market instruments,
equity, bonds, property, and other financial instruments.
The primary objective is to generate returns and grow the
fund’s value over time to meet Members’ future pension
obligations.

CLAIMS

When a Member exits the Fund, the employer facilitates
the submission of a claim on behalf of the Member or
their nominated beneficiary(ies) to the Fund for the
Member’s accrued benefits. Following the submission,
the Fund shall subsequently disburse the accrued
benefits to the Member or their beneficiary(ies).

Benefits under the fund

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RETIREMENT BENEFITS

Upon reaching the predetermined retirement age,
the Fund provides retirement benefits in the form
of a lump sum commutation of a percentage of a
Member’s accumulated Fund credit, as well as a
monthly pension income in a form of an annuity.

WITHDRAWAL BENEFITS

Withdrawal benefits are accessible to a Member that
exits the pension fund before reaching their retirement
age. This may occur due to various reasons such as
resignation or dismissal. The benefit provides for a lump sum
payout or a transfer to another recognised pension fund.

RISK BENEFITS

These are benefits embedded within the Pension
Fund that are intended to provide financial support
to a Member or his/her beneficiaries in the event of
an unforeseen adverse event such as permanent
disability or death of the Member.

Benefits under the fund

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Options

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SINGLE OR JOINT LIFE

A Member can elect between a single life annuity
which provides regular pension income to the Member
until their passing, or a joint life annuity, which offers
the added benefit of continued pension income to their
spouse after the Member’s death.

GUARANTEE PAYMENT PERIOD

Available under both single and joint-life annuities and
determined by the Member on inception of the Annuity.
This is the initial period (5 years, 10 years or 15 years) for
which the annuity is guaranteed to be paid regardless of
whether or not the Member dies during that specific period.

SPOUSAL REVERSION

Available only under joint-life annuities and determined
by the Member on inception of the Annuity. Upon death of
the Member, this provision determines the percentage
(50%, 75% or 100%) of the Member’s pension that the
surviving spouse will receive for the remainder of their life.

Our Annuity Options

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YEARS OF EXISTENCE

The Public Officers’ Defined Contribution Pension Fund has been established under The Public Officers’ Defined Contribution Pension Fund Act of 2008. It is managed by a Board of Trustees that is appointed by The Minister responsible for Finance in consultation with the Minister responsible for Public Service according to section 6(2) of the Act.

The fund provides retirement benefits and related matters to permanent and pensionable Public Officers