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An Annuity is a contract agreed upon by a retiree and the retirement fund or an insurance company detailing how monthly pension payments would be made to the pensioner for the rest of his or her life.

In terms of the Rules of the Botswana Public Officers Pension Fund, early retirement begins at age 45 while normal retirement is age 60, however, there are other Employing Authorities, who are also participants in the BPOPF, with a different early retirement age and normal retirement age (for example Botswana Defence Force).

When a member retires, he or she has the option to either buy a monthly pension (annuity) from the BPOPF or from an insurance company registered in Botswana. In terms of the Pension and Provident Funds Act and Regulations it is compulsory for a member to buy an annuity when he or she retires from the BPOPF.

One cannot encash all their benefits in the Fund. However, where the pension payable to a pensioner is less than P5 000 in a year, he/she can encash all the benefits as a tax free lump sum


•  Marital status;
•  Your age and that of your spouse;
• Your expected financial position at retirement - do you have other investments and assets in addition to your retirement savings in the Fund?
•  Your spouse’s financial position - is he/she still working and does he/she belong to a retirement fund;
• Your dependants, their ages and their circumstances - will they still be dependent on you after you retire and for how long?
• In the event of your death, would your dependants still be provided for financially

The monthly pension is taxable depending on the amount.


•  The pension is paid for the rest of your life and stops upon death.
• Your death benefits are guaranteed up to a maximum of 10 years.
• If you die within the guarantee period, death benefits equivalent to what you would have earned in the remaining guarantee period will be paid to your dependants. If you live longer than the guarantee period, you will continue to receive your monthly pension until death, but your dependants will not be paid any death benefits.
• Annual increments are fixed ( for example) 0%, 2.5%, 5% and 7.5%.
• These are selected at the time of retirement and cannot be changed.


This annuity is offered at BPOPF. The pension is paid for the rest of your life, and stops upon your death. Your death benefits are guaranteed up to a maximum of 10 years. Annual increment is based on the Fund’s investment performance. N.B. All Retiring Members Should Personally Contact The Fund For Pre-Retirement Counselling (i.e. advice on the best option available)