MNDF retirement allowances suspended for state appointees

The government has amended the MNDF Retirement Regulation to ensure that military personnel who have retired from service will no longer receive their retirement allowances if they hold other government or state-owned positions. 

This amendment, which was brought to the regulation on December 21, 2025, states that any retiree who is appointed to a state position or employed by a government institution or a state-owned enterprise (SOE) will have their retirement benefits suspended for the duration of that employment. 

The allowance will only resume in the month following their departure or termination from the new post.

This move follows a directive from President Dr. Mohamed Muizzu aimed at reducing government expenditure and addressing public concerns regarding "double pensions." The President has noted that it is not considered appropriate for individuals to receive a full retirement allowance while simultaneously drawing a salary from a separate state-level appointment. 

Similar changes were also implemented in the Police Service Retirement Regulations on December 25, 2025, and the Civil Service framework shortly thereafter.

Under the revised MNDF regulations, retirees who re-enter state service are required to formally notify the Pension Office or the relevant disbursing authority. If a retiree fails to provide such notice and continues to receive monthly allowances while employed, they will be required to return those payments. 

Notably, the regulation specifies that this change applies to all personnel who retired prior to the amendment. This policy affects a significant number of retired officials currently serving in leadership roles within major state companies such as HDC and MTCC.