Finance Ministry, Pension Office, Pay Commission, and MIRA back proposed legal amendment to utilize pension funds for medical treatment
Relevant authorities, including the Ministry of Finance and the Pension Office, have expressed their support for the government's proposed amendments to the Pension Act. These changes aim to facilitate the use of pension funds for home construction and Hajj pilgrimage reservations. Furthermore, officials noted that the amendments would strengthen the framework for releasing funds to individuals suffering from life-threatening illnesses.
Meeting of the Independent Institutions Committee | Majlis | Majlis
The Ministry of Finance and Planning, the National Pay Commission, the Pension Office, and the Maldives Inland Revenue Authority (MIRA) have expressed their support for a proposed amendment to the Pension Act. The amendment would allow individuals suffering from chronic illnesses requiring long-term medical treatment to withdraw their retirement pension savings in full.
The bill was introduced on behalf of the government by Hassan Mufeed, the Member of Parliament for the Milandhoo constituency. Following its acceptance by the Parliament, the legislation is currently under review by the Committee on Independent Institutions. During its meeting on Monday, the committee held consultations with relevant officials from the Ministry of Finance and Planning, the National Pay Commission, the Maldives Inland Revenue Authority (MIRA), and the Pension Office.
During the meeting, participating ministries and agencies highlighted that the proposed legislative amendment is a positive step. They further noted that these changes would bring significant benefits to members of the pension scheme.
Providing further details, the Pension Office stated that the new legislative amendment will allow scheme members to utilize their pension funds not only for home purchases but also for financing home construction through banks. Additionally, the amendment will enable retirees or individuals over the age of 65 to utilize their pension funds to reserve spots with the Hajj Corporation for the purpose of performing the Hajj pilgrimage.
The Pension Office stated that while this opportunity is currently unavailable, the upcoming legislative amendments will facilitate this change. Under the proposed legal reforms, pension contributions will be deposited only after the necessary funds for Hajj pilgrimage have been set aside.
Both the Pay Commission and the Maldives Inland Revenue Authority (MIRA) have endorsed the amendment, highlighting its positive impact. They further noted that the change is expected to strengthen the pension system and provide significant benefits to its members.
The government stated that the purpose of introducing this bill is to amend the Maldives Pension Act to disqualify individuals from receiving the basic old-age pension if they already receive an income exceeding the amount provided under the scheme.
The bill further stipulates that the proposed amendments to the law include allowing pension funds to be used as collateral for housing construction and renovation. Additionally, it seeks to establish legal frameworks and procedures for the disbursement of pension funds to individuals diagnosed with terminal illnesses, and to permit the utilization of these funds to secure advance reservations for the Hajj pilgrimage.
