GUIDELINES FOR PUBLIC WELFARE FUND

GUIDELINES FOR THE BOTSWANA PUBLIC OFFICER’S
WELFARE FUND
Membership
i. Membership is for all interested Public Service employees
including employees on contract.
ii.
To join the Fund, interested officers are required to submit a
completed form (BPOWPF 1) applying for membership to
DPSM office.
iii. The forms are available in the DPSM website,
www.dpsm.gov.bw and can also be collected from
respective Corporate Services in the Ministries/Departmental
Administration.
iv.
Applications for membership should be addressed to:
Directorate of Public Service Management
Private Bag 0011
Gaborone
v. Approved applications will be indicated by monthly
deductions as indicated in the Salary Advice Slip.
vi.
Withdrawal from the Fund is only permissible when an officer
leaves Public Service through resignation, retirement,
dismissal, termination of contract or death.
Contributions
i. Joining fee to the Fund is P50.00. Thereafter, a member
is expected to subscribe a monthly contribution of a
minimum of P50.00 or more.
ii.
Members are free to change their monthly contributions
provided it will not be lower than the minimum limit of
P50.00
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iii.
iv.
Members are obliged to ensure that the monthly
contribution is deductible from the salary and inform the
employer if deductions are not being made.
Failure to contribute for a continuous three months period
will result in a penalty of having the membership frozen.
v. Where membership is frozen for more than 3 months, the
officer will automatically be withdrawn from the Fund and
will be refunded his/her savings less any loan balance
outstanding with interest.
vi.
A member will be required to pay arrears incurred when
membership is activated.
Loan Application
i. For a member to qualify for a loan he/she should have
contributed for at least 12 months after joining the Fund.
ii.
iii.
iv.
Members who seek financial assistance from the Fund
are required to apply through completion of the prescribed
form.
Members outside Gaborone will submit their loan
applications to District Commissioners in their respective
Districts who will be the Authorising Officers.
Certified copies of National Identity (citizens) or Passport
(non citizens) and latest Salary Advice Slip should be
attached to the application form.
v. The loan qualification will be determined by the net pay
and take home pay as stipulated in Directive No 1 of
2005.
vi.
vii.
The loan lending ratio is 1:2. This means that the member
will be borrowed a loan which is twice his/her savings at
the time of loan application.
The maximum loan amount that one can apply for is
P15 000, payable within 36 months. This amount will be
reviewed as and when necessary.
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viii.
ix.
The loan will be charged an interest of 10%, compounded
annually.
Members are entitled to another loan after full payment of
the existing one.
x. Members shall be sent annual statements for their
savings accounts.
Loan Deductions
i. Loan repayments shall be done on monthly basis and
deducted from source.
ii.
iii.
Monthly contributions shall continue to be deducted while
a member is repaying the loan.
Failure to repay the loan shall result in legal action taken
against the member.
Withdrawal from the Fund
i. Members are eligible to withdraw from the Fund upon
resignation, retirement from the Public Service, dismissal,
termination of contract or death.
ii.
iii.
iv.
In the event that an employee separates with the Public
Service before fully repaying the loan, the outstanding
amount will be recovered from the employee’s savings. In
cases where savings are not adequate to service the loan,
recoveries will be made from the leave days and/or
terminal benefits.
Members wishing to withdraw from the Fund should give a
one month notice.
Upon withdrawal, a member is entitled to his/her savings
and interest accrued on the said savings.
v. Benefits can be accessed one month after withdrawal.
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vi.
vii.
If withdrawal is within the first 12 months of membership,
a member will receive their contributions only.
The Fund reserves the right to take legal action against
defaulters.
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