The Botswana Life Retirement Annuity Fund provides retirement benefits for Members and death benefits for Dependants or Nominees.
The Fund is governed by the Rules of the Fund, the Retirement Funds Act 2014, and associated regulations (the Act) and by the regulatory authority, NBFIRA. The Rules bind the Fund, Members and the Board and any person claiming from the Fund. The Fund is controlled and managed by a Board of Trustees, the Board which can apply to NBFIRA to amend or repeal the Rules.
Membership
Any natural person may become a Member. Membership starts after the first Contribution is received or when a membership certificate is issued. Membership terminates once all benefits have been paid or transferred, or when a Deferred Member’s Account can no longer meet Fees, or when a Member dies.
- Deferred Member - A member who has stopped contributing but whose Account retains enough value to cover Fees and to continue to participate in investment returns. If the Account value falls so low that Fees cannot be covered, the Deferred Member’s membership will terminate.
- Dependant - Any person for whom the Member is liable for maintenance; or who was financially dependent on the Member at/before death and includes any Spouse or Child.
- Nominee - Any Dependant or non-dependent person, nominated by the Member to be a beneficiary, to receive benefits on the Member’s death.
Benefits
On retirement, a member can buy an Annuity from any insurer to pay a pension from the Retirement Date until the Member’s death. A Member who becomes permanently disabled can retire early. At retirement, the Member can commute up to one-third of the Annuity, for cash. On death, subject to the Rules, a lump sum payment is payable to dependants and or beneficiaries. Once an Annuity has been bought or a death benefit paid, the Fund has no further responsibility for the Member, Dependant, or Nominee.
Benefits are payable to Members or nominees, but the Board may also direct that payment be made to a trust, guardian, curator, or beneficiary fund. If a Member does not take retirement at Retirement Age and does not give any other instruction, membership will automatically extend for further periods of 12 months at a time on the same terms (except that Insured Benefits may fall away) up to but not later than age 70.
If a due benefit is not claimed within 3 years and after due enquiry, the Member or potential beneficiary / Nominee cannot be located, the benefit shall revert to the Fund; provided that if a beneficiary or Nominee approach the Fund at any stage, the Board shall consider such claim and if the circumstances warrant, shall pay the benefit together with such investment earnings as it may allow.
All benefits shall be paid net of any income tax required to be deducted in terms of relevant legislation.
Click here to download the Botswana Life Retirement Annuity Fund Summary of Rules.
Click here to download the Botswana Life Rules of Fund As Approved by NBFIRA and BURS.