More than Rf 1 billion in pension fund

Pension Office has said that the Retirement Pension Scheme fund holds more than Rf 1 billion.

CEO of Pension Office Mohamed Hussain Manik told reporters today that Rf 50 million is received monthly as contributions to the fund, and 71000 private and public sector employees pay pension money.

He said that the fund makes profit from T-bills and fixed deposits. There are restrictions when it comes to investing the money; according to the Pension Act, the money can only be invested in companies listed on Capital Market Development Authority (CMDA).

The fund has purchased Rf 100 million worth of Dhiraagu shares.

“We have to increase the gains to the fund’s participants, because we receive Rf 50 billion monthly. For example, we can’t invest in anything risky; we have to make safe investments. So we can’t invest in just anything,” Manik said.

He also said that several groups have not participated in the pension fund still, and discussions will be held to include them in the scheme.

Basic pension for people over 65 years is also provided by the pension office. Manik said that the amount has been increased to Rf 2300 from January 2012, and that 15176 people over 65 currently receive this money.

The decision to increase the basic pension was made by the parliament.

Manik said that from 15 April, foreign nationals will receive the entire sum in their pension fund when they depart Maldives. However the money deposited as accrued pension can only be taken out when the person is 65 years old.

“Even if they reside in their country by then, they will receive this money,” Manik said.

Foreign nationals now have the chance to participate in the pension fund. They should complete registration before April 2014.