Voluntary pension scheme proposal rejected

A proposal to make contributions to the pension scheme voluntary has been rejected by the Parliament’s Social Committee.

The current Pension Act stipulates that it is obligatory to participate in the pension scheme, however a revision of the act has been proposed by Fares-Maathoda MP, Ibrahim Mutthalib.

Mutthalib’s revision states that the pension scheme should be made voluntary and the current pension wage of 7 percent should be reduced to 3.5 percent of salaries.

After assessment and discussion, it was decided by the Committee that the Pension Act does not require the proposed revision.

The Attorney General’s Office, Pension Administration Office, Maldives National Chamber of Commerce and Industries, Maldives Association of Construction Industry, and Maldives Association of Tourism Industry, were all involved in the discussion on how the current pension scheme would be affected, should the revision be approved.

The committee’s decision on the revision has been sent to Parliament.