The Sixth Amendment to the Maldives Pension Act (Act No. 8/2009) was ratified on 21 May 2026. The amendment aims to strengthen the administration of the pension system, improve the targeting of Basic Pension benefits, and provide greater flexibility for members to use their retirement savings for important life needs.
1. Reform of the Basic Pension Scheme
Basic Pension eligibility criteria have been refined to better target support towards individuals with the greatest financial need.
Individuals serving in elected or appointed public offices, as well as those employed by the Government or state-owned enterprises, will not receive Basic Pension while they remain in those positions.
Individuals whose direct income exceeds the Basic Pension eligibility threshold will not qualify for Basic Pension payments.
2. Use of Pension Savings for Housing Construction and Renovation
In addition to using their Retirement Savings Account (RSA) balance as collateral for home purchase loans, members may now also use their RSA balance as collateral for loans obtained to:
Construct a house; or
Renovate an existing house.
This expands housing financing opportunities for members throughout the Maldives.
3. Early Access to Pension Savings for Terminal Illness
Members diagnosed with a terminal illness may access their pension savings before reaching retirement age, subject to the conditions prescribed by law. This allows individuals facing serious medical circumstances to use their savings according to their needs and preferences.
4. Hajj Savings Provision
Members may use their pension savings to reserve a place for Hajj. The provision is intended to help individuals perform Hajj while they are physically and financially capable of doing so.
5. Expanded Participation for Self-Employed Individuals
The amendment broadens access for self-employed individuals to participate in the Maldives Retirement Pension Scheme (MRPS), helping more workers build retirement savings and improve their long-term financial security.
6. Strengthening Pension Fund Governance and Investments
To enhance investment returns and safeguard members’ savings:
Investment and asset management provisions of the Pension Fund have been strengthened.
New legal requirements have been introduced regarding the appointment of Board Members and the Chief Executive Officer.
Governance and accountability measures for the Pension Office have been enhanced.
Implementation
The amendment came into force on 21 May 2026, following its publication in the Government Gazette.
The Pension Office is currently undertaking the work required to develop the necessary regulations and administrative arrangements under the amendment. These are expected to be completed within three months, and further details will be communicated as implementation progresses.