The Parliamentary Finance Committee has taken the initiative to address the longstanding issues within the pension coverage in the country.
During the committee sit-down on Tuesday, committee members highlighted the overlap in the Pension Act and the Civil Service Act which has led to a double pension issue.
Speaking during the meeting on Tuesday, Deputy Speaker Ahmed Nazim pointed out that the various government institutions are carrying out
several pension schemes alongside the Maldives Retirement Pension Scheme, creating the “double coverage” issue.
This double coverage in the pension scheme contributes to inequality for public sector employees, as well as causing a huge financial burden to the government in providing for these unfunded schemes, he noted.
So the deputy Speaker suggested that the Committee should work as a mediator between the Civil Service Commission (CSC) and the Maldives Pension Administration Office (MPAO) to find a solution to the conflicts in the two laws. Nazim also proposed to reform the pension coverage of civil servants in a way to avoid a drastic reduction in their pensions.
Opposition Maldivian Democratic Party (MDP) lawmaker Abdul Ghafoor Moosa pointed out that the State was currently spending USD129.7 million annually on pensions which he insisted was not financially sustainable. As a solution, he proposed to put a cap on pension contributions during the reform process.
Additionally, he also proposed to annul all pension related clauses in all public service laws to leave the pension Act as the sole legislation on pension coverage.
Based on the proposals and suggestions, the committee has resolved to initiate the process from next week by holding consultations with MPAO, CSC and all other relevant State agencies.