Public Officer’s Defined Contribution Pension Fund (PODCPF) and Lesotho Institute of Public Administration and Management (LIPAM) formed an alliance on 27 March 2024 whereby they signed a Memorandum of Understanding at the Pension Fund building. Amongst those who were in attendance for this grand occasion were Honorable Mputi Stephen Mputi, Mrs ‘Mamotlohi Mochebelele and Mrs Nthabiseng Tlhomola.
As the Principal Officer of Pension Fund, Mrs Mochebelele gave a brief description pertaining to the purpose of the day, who reiterated that the gathering was planned to sign a MOA between two institutions (PODCPF and LIPAM) regarding issues related to education about finances. She said that there is approximately 12 billion that is invested by the government and civil servants, which is dedicated to their retirement, such that when a member exits (retires), their allotted funds are given to them. A question could be posed as to why the two institutions would decide on joining hands in this manner? Mochebelele gave insight to say that as the two organizations, it came to their attention that that they cater to the same people- civil servants moreover, the services that they render are similar.
She specified that for the longest time the government had been concerned about silo mentality and they saw it fit to break that chain. Additionally, she said that when LIPAM approached them with this partnership, it was easy to accept the offer because according to their 5-year strategic plan, this collaboration would enable them to achieve some of their key objectives from the plan. The first being to form strategic alliances and partnerships, secondly, to have deliberate stakeholder management with the intent of developing financial literacy modules and training workshops. This will assist their members to be well informed about what is going on in the market (money-wise), with this knowledge, they will be empowered to make better financial decisions. She accentuated that these services have always been available however, they were not delivered in the structured manner that they wish to employ. She ended her remarks by quoting an African Proverb,” if you want to go fast, go alone. If you want to go far, go together.”
The Director General, Nthabiseng Tlhomola who spoke on behalf of LIPAM said that they acknowledge that their common interest with PODCPF sparked the initiation of a working relationship as aforementioned by Mochebelele. They would like to disseminate this education so that it in turn speeds up knowledge about terminal benefits, which has seemingly become a problem as people do not know what the right procedures are that need to be followed. She iterated the issue of financial literacy which will edify civil servant’s’ understanding and awareness.
She mentioned that right from a person’s employment, they hold their hand and teach them how to operate as civil servants. They are inducted about the do’s and don’ts as well as the consequences thereof. The induction will differ in categories based on clerical, graduate, and management level. Guidance is given even after enrollment into the system and when approaching retirement. Tlhomola said initially they would prepare the retiree at a very late stage only to find out that they are swimming in debt but with this new development they will walk they journey right from the beginning till the end, teaching them how to handle finances post-retirement.
Honorable Mputi Stephen Mputi – Minister of Public Service said that the partnership comes at the right time which is at the end of the Pension’s proclamation of 1964. He said as the 2024-25 financial year commences; all the terminal benefits of all retiring civil servants will be processed by Pension fund which he referred to as a major milestone. He acknowledged that citizens and beneficiaries of public service are highly aggrieved and have completely lost confidence in public services that take time when one has retired which he said is disturbing and demoralizing. “…It is for these reasons that I am very elated by this signing as it heralds a new dawn in the way we have been doing business…,” said the Minister.
