Parliament of Maldives has passed an amendment to Pension Act, which would enable to withdraw 80% of funds from the Maldives Retirement Pension Scheme to finance the cost for Hajj pilgrimage. The amendment proposed by the government was passed by a majority of 70 votes.
Speaking before the vote, Chair of the Parliamentary Committee on Social Affairs Ahmed Easa noted the pension fund was formed with the aim of providing a retirement income. In an event another amendment should be brought to the Pension Act, he urged to take in to consideration the recommendations from Maldives Pension Administration Office (MPAO).
When summoned to the committee, Chairman of Pension Board Athifa Ali 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.
Following the ratification of the amendment, MPAO will transfer up to 80% 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.