Development of a regulation is underway to extend the Maldives Retirement Pension Scheme, which is granted via insurance institutions to citizens aged 65, for a lifetime duration, announced Maldives Pension Administration Office (MPAO) on Wednesday.
MPAO’s director Ismail Sujaau noted that currently the annuity granted to pensioners aged 65 only last 14 years.
“We’re working to provide that money via insurance for their whole lifetime. [Maldives] Monetary Authority will compile and publicise a regulation for that,” he said.
According to Sujaau, the finalised policy will be opened to insurance institutions.
“Currently, we’re providing [pension] until they reach the age of 79 at the most. But they will receive that money from the insurance company as long as they’re alive,” said Sujaau.
The director assured that the lifetime pension scheme will come into effect as soon as it has been implemented in the Pension Act.
The Retirement Pension Scheme is the scheme which deducts 14 percent from an employee’s monthly basic salary, to be released back monthly after the employee reaches the age of 65. It is not to be confused with the scheme that grants MVR 5000 monthly to locals aged 65 and up.