National Bureau of Statistics (NBS) has revealed the state spent USD 2.1 million more for pension last year compared to 2017.
The state spent over USD 84.447 million as pension last year, according to the Statistical Pocketbook of Maldives 2018 published by NBS. In 2017, the amount stood at over USD 78 million. The amount spent last year is an increase of 3 percent compared to that of 2017.
The statistics of NBS shows that retirement pension scheme contained the most expenditure which amounts to more than USD 3.767 million which is also 5 percent of the total expense on pension.
Maldives Retirement Pension Scheme (MRPS) is a Defined Contribution (DC) pension scheme. MRPS is a Defined Contribution Pension scheme fully funded from contributions from its members. Employees and Employers each contribute a minimum of 7 percent of the participating employee's basic salary towards the pension.
Meanwhile, the statistics also showed USD 9.289 million were spent on Basic Pension last year, which is an increase of 2 percent compared to 2017. Basic Pension aims to target poverty alleviation among the elderly by providing a minimum level of pension and is funded from the government revenue. The Basic Pension is funded through government budget appropriations and all Maldivian citizens who are turning the age of 65 are eligible to receive Basic Pension.
Moreover, the state spent over USD 18 million as other pensions in 2018, which is an increase of 4 percent compared to 2017.