The Pension Act has been amended to allow people aged over 65 to use their retirement savings to reserve slots for Hajj pilgrimage.
Previously, people aged 65 and above were not permitted to use funds in their retirement savings accounts to secure a place for the pilgrimage, even if they had been reserved a place.
Under the amendment, those under the Retirement Pension Scheme can use their savings to perform Hajj through the Maldives Hajj Corporation or a private Hajj service provider, regardless of whether they have reached retirement age.
To qualify, members must not have previously performed the obligatory Hajj and must have at least MVR 336,000 in their retirement savings account. Those who have pledged part of their pension savings for housing will qualify if their balance reaches the required amount after the pledged sum is deducted.
Under the scheme, members must pay 20 percent of the Hajj fare to the Hajj Corporation. The remaining 80 per cent will be withheld from their retirement savings account but will continue to be invested until it is transferred to the Hajj service provider.
Additional provisions:
- Hajj Corporation shall reserve a place for the member and notify the Pension Office. The Pension Office shall withhold up to 80 per cent of the official Hajj fare from the member's retirement savings account.
- When the Hajj service provider requests payment, the withheld money shall remain in the member's account until it is transferred to the company or the reservation is cancelled.
- If a member of the Retirement Pension Scheme whose funds have been withheld for Hajj passes away, the withholding from their retirement savings account shall cease.
- Money withheld for Hajj cannot be used as collateral or for any other purpose restricted under the Pension Act.
- Pension payments to members of the Retirement Pension Scheme will be made after deducting the withheld amount.
- A Hajj reservation may be changed or cancelled at the member's request, subject to the consent and procedures of the government company providing the Hajj transport service. The company may also change reservations if the number of pilgrims changes due to adjustments to the Hajj quota or government policy.
- If the official Hajj fare is reduced after a reservation has been made, the difference shall be deducted from the money withheld in the member's savings account.
- If the official fare increases, additional funds may be withheld if the member's account has a sufficient balance. If there are insufficient funds, the member may pay the difference separately or cancel the reservation.
- If a member is unable to perform Hajj in the reserved year for any reason, the service provider must refund the allocated money within 30 days after the Hajj pilgrimage. The Pension Office must deposit the refunded amount into the member's retirement savings account within 15 days of receiving it.
The amount withheld for Hajj will be excluded when calculating the pension payable to members who are already receiving a pension or who retire after making a reservation. As a result, the monthly pension payment will be subject to change.
If a reservation is cancelled or the withheld money is returned to the retirement savings account, the pension will be recalculated.
