Pension can now be used for housing schemes

President Abdulla Yameen, on Thursday, ratified amendment to Pension Act, which would allow pensioners to use their pension for state housing schemes.

The amendment has been published in Government Gazette, and has taken effect immediately.

The bill was proposed on behalf of government by Inguraidhoo MP Ibrahim Falah, and given parliament’s approval on April 19.

The amendment addresses the application of retirement benefit scheme. With the amendment, members of the scheme are given a feasible opportunity to purchase housing. And a set amount of a member's retirement saving can be allocated to be collateralized for housing needs.

Government hopes the amendment will resolve issues related to being unable to use the pension amount before 65 years. The amendment encourages participation in pension schemes because this enables members of the scheme to be provided with housing and social security within the schemes.