Maldives Pension Administration Office (MPAO) has revealed that an average of USD7.9 million is deposited to the Pension Fund every month.
Speaking at the Maldives Finance Forum, Chief Executive Officer (CEO) of MPAO Sujatha Haleem highlighted the importance of the Pension Fund in distributing pensions to retired individuals. She said that the Pension Fund has been increasing by 13% each year and over 2,000 employers have been paying pensions after registering employees, who are mostly 25-45 years.
Additionally, Sujatha said the Pension Fund currently consists of USD973 million in accrued rights and USD1.2 billion overall. She also said that MPAO aims to invest wisely to provide the most benefits to employees while also expanding the fund by introducing more schemes.
MPAO was formed under the Maldives Pension Act, which was ratified in 2009 as an independent legal entity. The Maldives Retirement Pension Scheme (MRPS) was mandated in all state offices in 2010 whereas the private sector adopted the scheme in 2011. MRPS was the successful outcome of the Maldives Retirement Pension Administration Project carried out with assistance from the World Bank. All financial assistance was rendered by the state merged under one name and the MPAO began managing pension collection and disbursements.
As per the Maldives Pension Act, Maldivians who have reached 65 years of age will be generally eligible for pension benefits, although people who have reached the age of 55 will also be eligible for early pension benefits if the balance in their account is enough to provide a lifetime monthly payment that is at least twice the amount of general retirement pension amount.