No agreement reached on making pension scheme voluntary

The Parliament's Social Committee has rejected the proposal to make contributions to the pension scheme voluntary under the Pension Act.

This revision to the Pension Act was proposed by Fares Maathoda MP Ibrahim Mutthalib.

The Committee decided after assessment and discussion with relevant institutions, that the Pension Act does not require the proposed revision.

Discussions were held on how the pension scheme will be affected by this revision if approved, with Attorney General's Office, Pension Administration Office, Maldives National Chamber of Commerce and Industries, Maldives Association of Construction Industry, and Maldives Association of Tourism Industry.

The Pension Act currently stipulates that it is obligatory to participate in the pension scheme, and Mutthalib's revision states that it should be made voluntary.

Mutthalib's revision also states that pension wage should be 3.5 percent of salaries, as opposed to the current pension wage of 7 percent of salaries.

The Committee's decision on this matter has been sent to the Parliament.