BPOPF Board, CEO cash big

Chairperson gets over P500 000 as sitting allowance CEO pockets over P2 million Remuneration is commensurate with the onerous responsibility bestowed upon them- BPOPF COVID- 19, Ukraine/ Russian war have been disruptive- Chairperson Mantswe BPOPF’s realis

Chairperson gets over P500 000 as sitting allowance

CEO pockets over P2 million Remuneration is commensurate Minister Eric Molale Johnson Motshwarakgole with the onerous responsibility bestowed upon them- BPOPF COVID- 19, Ukraine/ Russian war have been disruptiveChairperson Mantswe BPOPF’s realises 6.1% growth on accumulated funds and reserves

The Botswana Public Officers Pension Fund ( BPOPF) Board of Trustees and the Chief Executive Officer have cashed big in sitting allowances for the Fund’s Financial Year ending March 31st 2022 amid difficult times.

In line with corporate governance requirements and international best practices, the Fund recognises that appropriate remuneration of its Board and Executive Management which is commensurate with the onerous responsibility bestowed upon them is inextricably linked to the successful performance of the Fund.

To this end, the Fund has developed relevant remuneration policies for both the Board and Employees of the Fund Board.

The Board Chairperson Solomon Mantswe pocketed P353 600.00 being the highest earning from the 23 meetings he attended. The lowest Board Trustee earned P254 918.18 having also attended 23 meetings. Principal Officer or Chief Executive Officer Moemedi Malinda got P2 332 515. 35.

The Fund has indicated that the Board Remuneration Policy clearly details the principles determining their remuneration and provides that the members of the Board shall receive a fixed sitting allowance per Committee and Board meetings, and a flat monthly Retainer fee, at a rate prescribed by the Board. Executive Management is remunerated in line with the BPOPF’s Pay Policy. The Board Chairperson has acknowledged that the effects of Covid- 19 pandemic, and the invasion of Ukraine by Russia have caused instability with economic and social effects being felt across the globe, Botswana being no exception.

The BPOPF stated that the Board of Trustees is charged with the fiduciary duty to ensure that the Fund’s strategy remains relevant, in line with its short, medium and long- term strategic objectives to create value for the members of the Fund. According to the Annual Report for financial year ending March 2022, theirs is a fiduciary role which entails making decisions for, and on behalf of the members and ensuring that the overall performance of the Fund exceeds the expectations of the members. The Board operates in terms of a formal Board Charter that is periodically reviewed and adopted whose objective is to regulate its conduct of business and ensure that the Trustees are aware of their individual and collective duties and responsibilities. “In the course of discharging its mandate, the Board makes decisions by way of resolutions passed at formal board meetings. The Board meets at least once each quarter, with provision for special meetings to be held in order for the Board to dispense with critical and urgent matters, in accordance with the Board Charter and the Fund Rules.

“Meeting attendance plays an important factor in enabling the Board to deliver on its mandate, and all Trustees ( are) expected to attend these meetings. In the Financial Year under review, the Board held four ( 4) regular meetings and five ( 5) special meetings,” the Report shows.

The Board of Trustees is the governing body of the Fund and is constituted in terms of the Act and the Fund Rules. It is a diverse board in terms of age, skills, expertise, tenure, and gender. The appointment process entails nomination of individuals by Employer and Employees Trade Unions and is subject to a successful outcome of the fit and probity assessment by NBFIRA, the regulatory authority.

The Board consists of a total of eleven ( 11) Trustees, five ( 5) of which were appointed by the Employer being the Botswana Government ( Employer Trustees), five ( 5) by the members of the Fund ( Member Trustees), and one ( 1) Independent Specialist Trustee appointed by the Board.

The term of office for the Trustees is five years, with provision for another five- year term if the Trustee has not exited the board at the end of the first term. Exits from the Board are done in terms of the Fund Rules and Board Charter, and include resignations, recalls by the appointing authority and termination on grounds of breach of the Trustees Code of Conduct.

According to the Report the BPOPF’s accumulated funds and reserves amounted to P79.2 billion, representing a growth of 6.1 percent from the 2020/ 2021 financial year an increase attributed to favourable increase in private equities and improved local equities in the financial markets.

Mantswe stated that this comes at a time when the country and indeed the world is emerging from the Covid- 19 pandemic, the effects of which are still being felt following a turbulent past three years. He said in addition, the invasion of Ukraine by Russia has caused further instability with economic and social effects being felt across the globe, Botswana included.

The chairperson explained that despite this disruption and tough economic environment, they have remained resolute and focused on their mandate and the Fund’s key objective of sustainably growing member funds in the interest of its members and beneficiaries. “Our Assets Under Management grew by 7.8 percent from P83.6 billion in 2021 to P90.1 by March 2022, which I consider to be a positive reflection of a robust investment strategy and well- balanced portfolio.

“The Fund has declared a final interest rate of 5.8 percent for the active and deferred members, 4.9 percent for with profit pensioners and 6.3 percent for the pre- retirement switch portfolio. Overall, the Fund remains in a financially sound condition and able to meet its obligations at a funding level of 101.7 percent compared to 100.5 percent in March 2021,” Mantswe said in the Report.

Assets under management grew from P 83.6 billion in 2021 to P90.1 billion in 2022. This marked a 7.8 percent growth in assets. This increase in the assets under management of the Fund were driven by an increase in the performance of the underlying investments made on behalf of members.

Growth in contributions into the Fund remained low at 1.6 percent over the financial year as explained by a salary adjustment for members. Growth in the contributions was broad- based across employer, employee, and voluntary additional contributions.