The Maldives Pension System is a multipiller pension system introduced in 2009, under the Pension Act of the Maldives. The system consists of two major Pension Schemes; Maldives Retirement Pension Scheme (MRPS) and Old Age Basic Pension (BP) Scheme.
Key Features
Design
The Maldives Pension System comprises of three primary pillars, each serving a distinct purpose. Pillar Zero is dedicated to preventing old age poverty. Pillar One aims to help achieve a target income replacement for working individuals in retirement through mandatory contributions and Pillar Two helps determine the level of retirement income.
Coverage
Benefits provided under Maldives Retirement Pension Scheme are directly linked to the contributions made by individuals, promoting individual responsibility and financial planning while the system ensures that every senior citizen is entitled to receive a minimum basic pension.
Governance
The Maldives Pension System is managed by the Maldives Pension Administration Office, an independent statutory body. This autonomy shields the system from potential external influences. Regular monitoring and evaluation mechanisms are implemented to proactively tackle evolving challenges and enhance the system's efficiency.
Coverage
Employees
The system offers employees the opportunity to plan and save for retirement and help boost savings through mandatory employer contribution.
Self-employed
Self-employed individuals can opt to save through Pension System.
Retirees
Pension disbursement starts at 65 years. Individuals who qualify for early pension withdrawals may start withdrawals at 55 years of age.