The primary objective of MRPS is to ensure individuals save during employment to cater for their livelihood in retirement and ultimately creating financial independence. MRPS is a defined contributory pension scheme funded from contributions from both employees and employers. Presently, the Pension Act mandates a contribution of 14% of the pensionable wage, comprising of a minimum of 7% each from the employee and the employer. The Act, however, allows the employer to make the employee’s 7% contribution (or part thereof) on its own. The Act further allows voluntary contributions from both employees and employers over and above the 7% floor rate. Contributions to the scheme stop at the pensionable age of 65 and pensioner may start to draw down on the pension plan at this age.
MRPS is a contributory pension scheme funded through contributions from employees and employers while in employment
If you are an employee, your employer will collect and pay contribution on your behalf. If you are a Self-employed person you may follow the steps given below.
Pensionable wage is employee’s basic salary declared in the employment contract
Yes. 0.6% of total Retirement Savings Account of each member is charged annually as administration fee
Investment decisions are made by the board of Pension Office, in accordance with the Maldives Pension Act and the Statement of Investment Principles.
Currently MRPS funds are invested in:
There are four different investment choices. They are:
When you reach 65 years. You may also withdraw at 55 years provided that you qualify for early retirement.
If you are above 55 years of age and the balance in your Retirement Savings Account (RSA) is sufficient to provide a lifetime monthly payment (based on life expectancy at the age 55) that is at least twice the amount of the old age basic pension prevailing at the time of retirement, you are eligible for early pension withdrawal.
In the interim, monthly pension payment is calculated by dividing the balance in the member’s RSA at the time he/she reaches 65 years by life expectancy at the age of 65. At present as per WHO figures life expectancy at the age of 65 for Maldivians is 79 years. Thus pension benefits will be calculated for 14 years which is 168 months. In case the monthly payout is less than MRf2300, this amount will be paid until the RSA balance is exhausted.
Under the current ‘Benefits Regulation’, members are not allowed to withdraw from RSA for medical and other such purposes. However, special arrangement will be made in the future for members with life-threatening diseases to withdraw from RSA to for their medicals.
Balance in your RSA will be paid to your legal heirs. Payment will be made in the form of a lump sum to the beneficiaries determined through inheritance law, and the money will be disbursed through the courts.