The public accounts committee of the parliament has begun efforts to resolve the double pension issue in the country.
This comes after the Pension Office shared a special paper with the parliament explaining the difficulties faced due to the double pension issue and the financial problems that would arise in the coming days.
Referring to the document, Dhiggaru MP and Deputy Speaker of Parliament Ahmed Nazim said when the Pension Act was enforced in 2009, relevant government authorities had refused to accept the Special Act on Retirement Pensions mentioned in the Civil Service Act of 2007 as the Pension Act.
“The result of the temporary policy on granting retirement benefits introduced under the Civil Service Act so far has been a burden on the state which has opened up the possibility of double pension,” the Pension Office said in a statement.
Nazim said the Civil Service and Pension Office should work together to resolve the conflicts between the two laws, but said the pensions of civil service employees should not be affected.
He said civil servants are working on very low salaries and the changes should be planned so that they do not bear the brunt of it.
Speaking further, Nazim also pointed out that changes to the Civil Service Commission's Act have been incorporated into subsequent laws relating to other institutions.
"The same is true in the corrections and judiciary. So we can initiate amendments to the laws separately. I believe that is the best way," he said.
Nazim pointed out that some judges retire at the age of 37 and receive salaries and allowances for the rest of their lifetime. Those in uniformed agencies also go to political positions after retiring, while receiving their retirement allowances and get additional benefits, he added.
On the issue, Hanimaadhoo MP Abdul Gafoor Moosa said that this is not the most sustainable way to provide pensions, detailing that individual institutions tailor pension policies to their desires with each new law.
"The pension-related sections of other institutions should be removed. That is what should be done. Then this can be done. We should have the courage to do that," he said.
Gafoor also said the pension system of the parliament also needs to be changed to become more sustainable.
Following the talks, committee members agreed to hold another meeting tomorrow to discuss the issue.
According to World Bank figures, Maldives spends an average of USD 100 million (MVR 1.5 billion) on pensions, accounting for two percent of the country's GDP.
World Bank also estimates that Maldives' elderly population will increase ninefold over the next 40 years, reducing the working population fourfold. According to local reports, the country's elderly population began to rise from 2010 onwards.
While Maldives' population is undergoing a major demographic change, the elderly population reached 4.9 percent by 2020. That figure is expected to rise to 10 percent in 2030 and 17 percent in 2040, according to the World Bank.