Alexander Forbes’ P4m retirement deception

Peggy Tsholofelo Mmopele was employed by the Botswana Defence Force (BDF) as a Senior Communications Officer on a permanent and pensionable terms on 21 July 1982 and retired on 31 March 2016. By virtue of her employment with the BDF, during the term of her employment Mmopele was a member of the Botswana Public Officers Pension Fund (BPOPF) until she retired from the public service. Prior to her retirement, Mmopele alleges that she was led, by then BPOPF Fund Administrator, Alexander Forbes Financial Services Botswana (now AlexForbes), to believe that she would receive a higher retirement value (as she understood it, an amount that included both her own and the employer’s contributions) on retiring than the value that she was actually paid upon retirement. [ihc-hide-content ihc_mb_type="show" ihc_mb_who="1,2,3,4" ihc_mb_template="3" ] Before a Tribunal, Mmopele sought a review of Alexander Forbes’ administration of the fund and interpretation of its rules. It is alleged that Mmopele sustained financial prejudice in consequence of the maladministration of the fund by Alexander Forbes, which influenced her decision to opt for early retirement, and that a dispute of fact or law arose in relation to the Fund between BPOPF and its administrator on one hand and Mmopele on the other. Mmopele in essence sought to review the decision of the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) confirming the decision of BPOPF to pay her retirement benefits in accordance with the benefit statement issued by BPOPF that a fund credit of P2,325,363.66, as opposed to a statement issued by Alexander Forbes that contradicted the BPOPF’s statement and had a fund credit of P4,401, 400.63. Mmopele testified that a few months before her retirement, she visited Alexander Forbes to inquire about her benefit statement. She stated that before she could commit to any decision regarding her life, she needed to know what her pension benefits would be. Accordingly, she sought advice from Alexander Forbes as the BPOPF fund administrator that was tasked with the responsibility of providing that kind of information. Mmopele further testifies that she had not been receiving her benefits statements for over two years at the point of visiting Alexander Forbes. She says she was requested to produce her Identity Card for verification. Moreover, she was surprised to hear that her fund credit sat at over P4 million, and Alexander Forbes confirmed that it was the actual and correct calculations. Mmopele states that the basis of her surprise was that two years preceding her inquiry she had received her benefit statement that indicated that she had about P1 900 000 in her fund, which had now dramatically increased to over P4 million within 24 months. According to her testimony, it is further said that Alexander Forbes at this stage never furnished her with a printed copy of her benefit statement but was only told by an officer who was assisting her with the figures. Mmopele went back to Alexander Forbes after a few months for further inquiries. She testifies that Alexander Forbes provided her with the same figures but did not show her any document or hand her any document showing proof of her fund credit. She says unaware that the figures verbally communicated to her overstated her legitimate pension entitlement, she formed a decision to retire and gave notice to the BDF on 30 November 2015 of her decision to opt for early retirement. In her notice of retirement letter, she indicated to the BDF that her notice period was to run from January 2016 to the end of March 2016. The BDF dully accepted her retirement and confirmed 31 March 2016 as her date of retirement. Mmopele further states that it was only in January 2016 that while attending pre-retirement counselling that she was handed a benefit statement by BPOPF that stated her fund credit as P2 325 363.66. She was shocked because all along she had trusted the figures stated by Alexander Forbes as true and correct. Claiming to have retired on 31 March 2016 based on the pension advise relayed to her verbally by Alexander Forbes sometime in 2015, Mmopele states that she objected to any reduction in her pension benefits, but to no avail. But BPOPF was adamant that the correct benefit statement was as issued by it and not Alexander Forbes. Mmopele alleges that when visiting Alexander Forbes on April 2016, post-retirement, she was provided with a copy of her benefit statement by Alexander Forbes detailing, among other things, a fund credit of P4 401 400.64. She testifies that but for this inaccurate pension data provided verbally by Alexander Forbes and later verified after her retirement by a computer printout, she would not have opted for early retirement from the BDF in March 2016. Explaining how a benefit statement issued to her on 20 April 2016 could possibly influence her to opt for early retirement in November 2015, Mpokele stated that throughout the last quarter of 2015, she frequented Alexander Forbes who kept verbally advising her that her fund credit was more than P4 million. On 20 April 2016 the computer printout was merely a confirmatory benefit statement that corroborated the previous verbal representations issued by Alexander Forbes on each occasion of inquiry. She believes BPOPF is bound by Alexander Forbes’ statement as is its lawful agent, and its decisions and declarations were taken to bind BPOPF. In defence, Angelina Mpe, the Alexander Forbes representative, states that there was no record to show that Mmopele ever made a written inquiry before she gave the notice to retire and that there was also nothing on record to show that she ever received a written confirmation of her fund credit before making a life changing decision to retire. Further, NBFIRA, on the other hand, says all the benefits statements on record issued by BPOPF have a note to the effect that “any errors in your personal details should be reported to the employing authority” but notwithstanding Mmopele decided to inquire from Alexander Forbes instead of the employing authority or BPOPF. NBFIRA further submitted that the benefit statements for the years 2013, 2014 and 2015 were consistent with the applicant’s contributions and the BPOPF’s declared interest rates. NBFIRA further narrates that the estimated returns based on the P4 401 400.64 that Mmopele alleges to be her fund credit would have meant that the returns declared by BPOPF for the year ending 31 March 2015 was 125 percent, which NBFIRA says would be inconsistent with the market fundamentals and other actual returns previously declared by the BPOPF. NBFIRA further questions the conduct of Mmopele, characterising it as irresponsible and unreasonable, especially that she is literate, having served as Senior Communications Officer at the BDF. NBFIRA says since the benefit statement containing the P4 401 400.64 was handed to her after retirement, it could not have persuaded her decision to retire early. [/ihc-hide-content]

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Alexander Forbes’ P4m retirement deception

A woman who opted for early retirement from the Botswana Defence Force on the basis of figures presented to her as her due retirement package is finding herself deserted and her calculations contested by authorities she trusted

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Alexander Forbes’ P4m retirement deception

A woman who opted for early retirement from the Botswana Defence Force on the basis of figures presented to her as her due retirement package is finding herself deserted and her calculations contested by authorities she trusted

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