The government has proposed a bill in Parliament to amend the Pension Act such that pension funds can be utilised for treatment of serious life-threatening or terminal illnesses, even if the individual has not reached the pensionable age.
The bill was proposed in line with an announcement made by President Dr Mohamed Muizzu on 7 December. The bill will be debated at an extraordinary session of the Parliament scheduled for 5 January.
The bill, submitted on behalf of the government by Member of Parliament Hassan Mufeed Abdul Gadir, defines serious illnesses as conditions where a specialist doctor determines that the person is unlikely to survive more than 12 months despite adequate treatment.
The bill offers flexibility in pension use, such that it can be paid in multiple payments or as a lump sum for treatment. It also includes rules that exclude those whose income exceeds the basic pension payout.
The bill also includes provisions on Hajj financing, allowing pension funds to be used to reserve Hajj waitlist spots in advance, paying 80 percent from pension funds after a 20 percent initial payment to the Maldives Hajj Corporation.