Maldives Retirement Pension Scheme (MRPS) is a mandatory defined contributory pension scheme where the employee and the employer each contribute 7% of the employee’s pensionable wage.
Pension contributions are invested in different asset classes through the Funds managed by the Pension Office, and upon retirement the members are entitled to receive the returns from these investments on top of the accumulated contributions, thereby maximizing the value of the Retirement Savings of the members.
To ensure as far as practical in the circumstances that:
Maximized Pension Contributions
Purchasing Power Preservation
Protection Against Volatility
Cost-of-Living Adjusted BenefitsIn order to achieve the best interest of members, the Pension Act requires the MRPS investments to be carried out prudently while prioritising the key investment considerations of security of assets, diversity of investments, risk-return tradeoff and liquidity of assets.
Security
Diversity
Risk-return tradeoff
LiquidityThe Pension Office has a long-term investment strategy to achieve a well diversified portfolio across asset classes, sectors, industries and geographical regions, to achieve an optimal portfolio allocation. All MRPS Funds will be composed of a Core Portfolio and a Performance Seeking Portfolio.
The Core Portfolio is the defensive, liability matching portfolio with a short term investment horizon to ensure that MRPS has sufficient funds available to meet redemptions or transfer of funds to the post-retirement cycle while maximising the term premium.
The Performance Seeking Portfolio comprises both Domestic Investment Portfolio and Return Seeking Portfolio. The strategic focus will be on investing in asset classes with the aim of maximising returns.
MRPS has a long-term strategy that involves overseas investments through the Return Seeking Portfolio. However, as of now, the Performance Seeking Portfolio currently encompasses the Domestic Investment Portfolio, as MRPS has not yet initiated any overseas investments.
