President Considers Pension Act Amendment to Broaden Fund Access

President Dr Mohamed Muizzu said he is considering amending the Pension Act to expand the circumstances under which individuals may access their pension funds.

He made the remarks during a meeting with residents of Henveiru yesterday evening, where one resident expressed concern about the small balance accumulated in his Pension Fund after many years of work. The resident asked whether the money could be used to start a business and secure an income.

advertisement

In response, President Muizzu said he plans to propose changes that would allow limited use of pension savings under specific conditions. He confirmed that an amendment will be submitted to the People’s Majlis when its new session begins in February.

“I will propose to amend the law to allow the use of funds in the Pension Fund under special circumstances,” he said.

However, the president did not provide details of the proposed amendments. Under existing rules, pension funds may be used for certain purposes depending on the balance, including using it for the Hajj pilgrimage, and making down payments for housing.

In October, opposition MP Mohamed Ibrahim (Kudu), representing the North Galolhu constituency, submitted an amendment to the Pension Act to allow people with disabilities to access their pension benefits before the age of 65. During a vote on 21 October, the amendment was rejected, with 52 MPs voting against it. The ruling party holds a majority in parliament, with the People’s National Congress (PNC) occupying 75 of the 93 seats.