Maseru — The Lesotho Police Staff Association (LEPOSA) has submitted an urgent appeal to the Public Accounts Committee (PAC) of the National Assembly, seeking intervention to rectify what they describe as discriminatory practices in the pension payouts for police officers compared to their counterparts in the Lesotho Defense Force (LDF).
In a detailed letter addressed to the Honorable Chairperson of the PAC, Makatleho J. Mphetho, General Secretary of LEPOSA, outlined the historical and legal context behind the current pension framework, drawing attention to the disparities that have emerged over time.
Background of Pension Regulations
The appeal references Section 150 of the Lesotho Constitution, which was designed to ensure that future laws would not disadvantage retirees compared to previous legislation. Historically, pensions for civil servants were governed by the Pensions Proclamation of 1964, which used a formula of 1/600th for calculating benefits.
In 1998, the LDF established its own regulations, offering more favorable benefits than the 1964 Proclamation. This discrepancy became particularly apparent in 2008 when the Defined Contributory Pension Fund Act was introduced. The Act was intended for retirees born on or after April 1, 1964. Subsequently, in 2011, the Minister of Finance amended the 1964 regulations to increase the formula to 1/540th, enhancing payouts for those born before March 31, 1964, who were not contributing five percent (5%) to their pensions.
Disparities in Pension Payouts
The letter highlights two primary scenarios where the pension payouts have resulted in inequality:
1. Reversion to 1/600 Fraction: Despite contributing to their pensions, current police officers are still subject to the 1/600 fraction of the 1964 Proclamation, leading to lower payouts than those who did not contribute. LEPOSA argues that this fraction should be increased to 1/480 to reflect the contributions made by the officers.
2. Unequal Payouts Between LDF and LMPS Members: The differing regulations between the LDF and LMPS have created significant disparities in retirement benefits. For example, a police constable with a monthly salary of M10,447 and 30 years of service would receive a gratuity of M235,057.50 and a monthly pension of M4,701.15. In contrast, a private in the LDF with a similar salary and service would receive a gratuity of M313,410 and a monthly pension of M6,268.16.
Legal Precedents and Calls for Equality
LEPOSA’s appeal is supported by the precedent set in the case of Likoti v. Prime Minister, where the Constitutional Court ruled against discriminatory practices in the payment of gratuities and loans for members of parliament and cabinet ministers. LEPOSA contends that it is equally discriminatory to pay one security agency more than another when both contribute equally to their pensions.
The association urges the PAC to intervene and ensure that all retirees, regardless of their security agency, receive equal treatment and benefits upon retirement.
Conclusion
LEPOSA’s submission to the PAC underscores a significant issue of inequality within the current pension system, calling for urgent reforms to ensure fairness and justice for all of Lesotho’s public servants. The association hopes that the PAC will heed their appeal and take the necessary steps to rectify these longstanding disparities.
