MVR 1.5 billion allocated for state pension in proposed budget for 2019
Minister Munavvar said at the budget review committee sitting on Tuesday that the state’s expenses on pension have increased consecutively from year to year
Signboard at the entrance of the Pension Administration Office in capital city Malé
A total of MVR 1.5 billion has been allocated for the state’s pension scheme in the proposed budget, Finance Minister Ahmed Munavvar has said.
Minister Munavvar said at the budget review committee sitting on Tuesday that the state’s expenses on pension have increased consecutively from year to year.
In this regard, Munavvar said that state expenses on pension will increase by 9 percent every year until the year 2040.
He added that this needs to be addressed and the scheme needs to be reviewed so as to make it sustainable. A total of 189.1 million was allocated for pensions in the budget proposed last year.
While state pension scheme, which provides funds in whole after retirement for state employees in addition to monthly allowances, exists, some state institutions provide a separate pension fund for its employees.
Such institutions, such as the corrections, customs, and police, need to regulate their separate funds in order to make the national scheme a more sustainable expense.
