Universal and mandatory pension scheme proposed

source: Mmegi
Staff Writer

The high administrative costs of local commercial banks have been highlighted as one of the major detrimental factors that will hinder the introduction of the proposed broad-based occupational pension scheme for Botswana.
Various speakers at a workshop on developing the pension scheme organised by the Ministry of Labour and Home Affairs spoke of the need for administrative costs to be reduced for it to benefit the poor.

“Most employees in Botswana earn under the minimum wage”, economist Dr Keith Jefferis said. “We will have to find innovative ways for the scheme to benefit low income earners.”
In their recommendations, the workshop participants suggested for the government to engage and subsidise financial parastatals like the Botswana Savings Bank (BSB) and BotswanaPost to provide banking for the scheme.

Even though the administrative costs would initially go down if [continue reading]

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