Minister of Finance Moosa Zameer said that the decision to maintain the double pensions for retirees was made during a Cabinet meeting held yesterday.
The government has reversed its decision to discontinue monthly allowances for newly retired government employees, which was set to take effect on January 1, 2025.
Speaking to Mihaaru News today, Minister of Finance Moosa Zameer said that the decision to maintain the double pensions for retirees was made during a Cabinet meeting held yesterday.
“There are employees who have been receiving this allowance for a long time,” said Minister Zameer, who also serves as the President of the National Pay Commission.
“Concerns were raised about the inconvenience caused by suspending something they have relied on for a long time.
1. Police
2. Defence Ministry
3. Customs
4. Judicial Service Commission
5. President's Office
6. Department of Judicial Administration
7. Prosecutor General's Office
8. ACC
9. Maldives National University
10. Parliament Secretariat
11. Election's Commission
12. Auditor General's Office
13. Civil Service Commission
A 2015 special audit report by the Auditor General highlighted significant concerns over the sustainability and fairness of the double pension system in the Maldives. The report recommended harmonizing the pension system to eliminate double pensions, warning of its growing financial burden on the state.
According to the report, if the system is not reformed, state spending on pensions is projected to reach MVR 4.3 billion by 2030.
The World Bank and the International Monetary Fund (IMF) have also previously advised the government to abolish the double pension scheme, emphasizing the need for reform to ensure fiscal sustainability.
The expenditure on these pension schemes, which lack private contributions, has been increasing steadily. This year’s budget allocates MVR 266 million to the scheme, with an estimated MVR 272 million planned for 2025. Additionally, MVR 45.2 million is allocated for lump-sum payments to retirees in 2024.
Despite these concerns, the government has decided to continue providing double pensions, citing the long-standing reliance of retirees on the allowance and the inconvenience its suspension would cause.
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