Pension reforms said not to affect retirement fund

The Maldives Pension Office said Monday that amendments to the Pension Act will not affect the pension fund.

The amendments were discussed with authorities in Parliament. The meeting was attended by the Pension Office, the Ministry of Finance and MIRA.

At a meeting of Parliament’s Independent Institutions Committee, officials of the Pension Office said they supported the amendments to the law and stated that the measures were required at this time.

The amendments include provisions for the release of funds from the pension account for treatment of life-threatening illnesses, the use of funds as a down payment for the purchase or repair of a house, and payments to reserve a place in the Hajj Corporation queue for members aged 65 and above who wish to perform Hajj.

Some members questioned whether the amendments would affect the original purpose of the pension fund.

Pension Office Chief Legal Officer Abdulla Fikuree said the main purpose of the fund is to save money for retirement and that the amendments do not change that purpose.

He said the fund can already be used for Hajj and that the amendment allows the option to remain available after the age of 65. He said a member may choose to use their funds to reserve a place in the Hajj queue instead of receiving a pension at that time.

Fikuree also said funds issued for housing construction or repair are provided on the condition that the money is returned to the fund or the loan is repaid before the retirement age.

“Therefore, none of this will affect the payment of pensions,” he said.

He said the amendments address areas that required change and that the aim of the Pension Office is to make arrangements that benefit the public.