Pension law revised to allow collateral use for housing construction
The bill was passed by the People's Majlis during the 19th sitting of the first parliamentary session of the year held last Thursday.
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President Mohamed Muizzu has ratified the sixth amendment to the Pension Act, allowing pension savings to be used as collateral for housing construction and renovation.
The bill was passed by the People's Majlis during the 19th sitting of the first parliamentary session of the year held last Thursday.
According to the amendment, individuals receiving an income higher than the amount allocated under the elderly basic pension scheme will no longer qualify for the basic pension.
The amendment also permits pension savings to be used as collateral for:
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Construction of residential properties
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Maintenance and renovation of homes
In addition, the revised law introduces provisions allowing withdrawals from pension savings for individuals suffering from critical illnesses.
The amendment also permits pension funds to be used to secure reservations for the Hajj pilgrimage.
Following ratification by the President and publication in the Government Gazette, the amendment has now come into effect.
