n South African Law Journal - Constitutional challenges in the implementation of a compulsory pension fund : the case of Lesotho

Volume 131, Issue 2
  • ISSN : 0258-2503
  • E-ISSN: 1996-2177



This article discusses pension reforms in Lesotho and the constitutional challenges faced by Lesotho in its implementation of these reforms. The article locates this discussion within the context of the pension funding policy shift in Lesotho from a defined benefit to a defined contribution fund and the legal challenge to this policy shift in . The article argues that the judicial decision to uphold the government's pension funding policy choice should be welcomed because the policy choice will benefit Lesotho. The decision in Sechele necessitates a discussion of the characteristics of a defined contribution fund and a defined benefit fund, and a consideration of the characteristics of a hybrid pension fund, including the implications of choosing any of these types of funds. The article examines the remedy granted by the Court of Appeal, and argues that the effect of this remedy is that Lesotho has not completely switched from a defined benefit to a defined contribution fund since the government remains under a constitutional obligation to pay promised pension benefits.

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