Death benefit provisions in the Pension Funds Act 5 of 2019 of Lesotho: Contradictions or deliberate policy choices?

Abstract

This article discusses the provisions in the Pension Funds Act 5 of 2019 (PFA 2019) that regulate the payment of death benefits after a member of a pension fund has died. While the article welcomes the death benefit provisions in the PFA 2019, it discusses two potential problems that will likely confront Lesotho as it implements those provisions. The first problem is the possible contradiction between sections 32 and 35(1) of the PFA 2019. The article suggests ways to avoid this potential contradiction short of amending the PFA 2019. The second problem is the absence of a definition of a "dependant" in the PFA 2019 and the constitutional implications of this. The article recommends reliance on the common-law definition of dependency or the inclusion of such a definition in the regulations to the PFA 2019.