Members retiring from MRPS
The Maldives Pension Act stipulates the retirement age at 65 years of age.
Upon reaching 65 years of age members of MRPS can apply to start withdrawing their accumulated retired savings. Members can either choose to draw their monthly pension in the form of a retirement annuity product or as a drawdown option.
In Maldives, life insurance providers can issue retirement annuity products under the Regulation on annuities published by the MMA.
The retirement annuity is an insurance product offered by an insurance company which typically guarantees a monthly payment for lifetime. Retirement annuity products can come in different forms including an option to withdraw lump sum amount of the accumulated savings and annuities the remaining savings as an annuity.
Members can choose MPAO approved annuity products offered by the Insurance companies to receive their monthly pensions.
In Maldives, Allied Insurance Company is the only insurer licensed to provide life insurance products.
Retirees of MRPS can choose to draw their monthly pension as drawdown option offered by MPAO as well. Under the drawdown option, the accumulated savings will be distributed over the years of remaining life expectancy (published by WHO for Maldives and the equivalent monthly pension payout will be distributed until the accumulated balances are exhausted.
Retirees are advised to compare the annuity and drawdown option before they choose the method for receiving.
Benefit Enhancing Schemes
Ensuring an adequate pension for retirees of the scheme is the top priority for MPAO. MPAO has consistently explored avenues to enhance member benefits without compromising this objective during the years members continue contributing to the scheme.
To achieve this objective MPAO has introduced a Collateralization of Retirement Saving Account (RSA) for homeownership and a disability insurance for members of MRPS.
RSA Collateralization Scheme for homeownership
Under this scheme members of the MRPS can pledge a designated proportion of their RSA for paying down payment of a mortgage loan. Financial institutions who accepts RSA as down payment of the mortgage loan will then issue a 100% loan to finance the purchase of property. Members who do not have raise the required equity portion of mortgage loans can utilize this facility to secure mortgage loans.
The primary collateral under such loans will remain the property and in case of default will be sold first to repay the mortgage and any shortage will be set off against the Collaterized amount in RSA.
For more details of the scheme please refer to the regulation and FAQ.
Disability Insurance Scheme
Article 20 of the Pension Act states that members of MPAO must facilitate a disability insurance scheme for members of MRPS. MPAO is the final stages of completing the project and once completed the scheme, members will be covered against loss of income and pension contribution from the loss employment caused by permanent disabilities.