Parliament has passed amendments to the Maldives Pension Act, introducing changes to eligibility for the basic pension and the use of pension savings.

The bill, submitted on behalf of the Government by Milandhoo MP Hassan Mufeed Abdul Gadir, was passed with amendments proposed by Parliament’s Independent Institutions Committee.

Under the amendments, individuals earning an income higher than the amount provided under the basic pension scheme would no longer be eligible to receive the pension. The Maldives Pension Administration Office’s board, in consultation with the Ministry of Finance, will determine the criteria and procedures for assessing eligibility based on income.

The amendments also state that individuals receiving the basic pension would become ineligible if they are elected to a position under the Constitution or employed in a state institution or Government-owned company.

The bill further introduces provisions allowing pension savings to be used as collateral for housing construction, home purchase and renovation loans issued by banks, financing companies and other financial institutions. Separate regulations governing the process are to be drafted.

In addition, the amendments allow pension savings to be withdrawn in cases of terminal illness and permit the use of pension funds to reserve Hajj slots in advance.

The bill defines terminal illness as a condition certified by a specialist doctor in which a patient is unlikely to survive beyond 12 months despite receiving treatment. In such cases, individuals would be permitted to withdraw all funds held in their retirement savings account.

Changes were also made to the composition of the Pension Office board following committee review. Under the revised structure, the board will consist of nine members, including a chairperson, senior civil servants representing the ministries responsible for finance, social security and employment, along with five representatives from the private sector.

All board members except the CEO will be appointed by the President, while the CEO will be appointed by the board itself.

The amendments further state that current board members, except those appointed through the Capital Market Development Authority, will remain in office. Vacant positions must be filled within 30 days of the law coming into force, while a CEO must be appointed within 60 days.

The amendments were passed with the support of 61 MPs.