Advice sought on allowing terminally ill patients to withdraw pensions

The Independent Institutions Committee of Parliament has decided to seek advice on a proposed amendment to the pension law that would allow people diagnosed with terminal illnesses to withdraw their pension savings in a lump sum.

The committee decided today to consult the Pension Office, Maldives Inland Revenue Authority (MIRA), and the National Pay Commission on the proposed changes.

The motion was submitted by Kelaa PNC MP Abdulla Shareef, who proposed holding a committee meeting with the three institutions tomorrow.

The motion was supported by Fuvahmulah South PNC MP, Ibrahim Hussain, and was passed unanimously by the members present.

Under the proposed amendment, individuals diagnosed with a terminal illness would be allowed to withdraw part or all of the money in their retirement pension account even if they have not reached the retirement age of 65.

The bill defines a “state of terminal illness” as a condition where a specialist doctor determines that the individual is unlikely to survive beyond one year, despite receiving appropriate medical treatment.

According to the proposal, individuals in such circumstances may withdraw the full balance or a portion of their pension savings in a single payment, should they choose to do so.

The bill also proposes several other amendments to the Pension Act. These include allowing pension funds to be used as collateral for housing related purposes, such as down payments for home construction, repairs, or the purchase of housing.

Under the current Pension Act, pension savings may only be used as collateral for down payments on completed flats sold to the public.