Maldives Pension Administration Office (MPAO) has revealed 30,000 Maldivians will be provided the opportunity to perform the Hajj pilgrimage in the next 10 years from the Maldives Retirement Pension Scheme.
Speaking at the Parliamentary Committee on Social Affairs, Chairman of Pension Board Athifa Ali noted Maldives Retirement Pension Scheme is a contributory Pension Scheme introduced under the Pension Act of Maldives to ensure that individuals save during employment to cater for their livelihood in retirement.
Expressing the Maldives Retirement Pension Scheme is a vast fund, Athifa said there would not be consequences in allocating funds from the scheme to perform Hajj pilgrimage, as per the pledge of the government. However, she revealed there could be long-term issues faced by MPAO, if not short term, as the institution has to bear the burden in issuing monthly payments to its recipients. She also added it is vital to review and if needed to amend Maldives Pension Act, instead of continuously making minor changes.
MPAO will transfer only up to 50% of the declared rate set by the relevant authorities, according to the Hajj Scheme. Further, MPAO will make payment for only those members eligible for the Hajj Scheme.
The Hajj Scheme is eligible for persons who are performing the pilgrimage for the first time and if they have at least USD 21,960 in the Maldives Retirement Pension Scheme. MPAO had previously revealed 6.000 individuals meet the requirements under the Hajj Scheme. The government is aiming to increase the declared rate from Maldives Retirement Pension Scheme to 80 percent, instead of the 50 percent which was initially approved by the parliament.