The Parliament Deputy Speaker Ahmed Nazim has called for the legislature to step up in solving the issue of double pension.
According to Nazim, the Maldives government has spent MVR 2.96 billion on pensions over the past 13 years.
During a recent Public Accounts Committee meeting, the Deputy Speaker highlighted that the Maldives Pension Administration Office (MPAO) had shared its data pertaining to the disbursement of pensions. The information from MPAO was shared with the parliament committee in assisting the government’s ongoing cost-cutting efforts.
MPAO information revealed that the primary issue related to pensions is the origin and the continued prevalence of double pension. Nazim highlighted that though retirement benefits are extended via the Pension Act implemented in 2009, an interim policy on pension distribution existed under the Civil Service Act which came to force in 2007.
“As stated, Civil Service Act, Article 57(d) specifies that until a law is enacted to determine the retirement benefits and payments begin as per that law, the benefit shall be determined by the Commission with the advice of the Ministry of Finance,” he said.
While pensions were disbursed under the Civil Service Act, many relevant state authorities opposed accepting the Pension Act as the specific legislation regarding retirement benefits, Nazim added.
“Pension Office has stated that relevant state authorities had opposed accepting the Pension Act which came to force on May 13, 2009 as the legal authority in retirement benefits,” he commented further on the matter.
“The result of continuing with this temporary policy under the Civil Service Act so far has been that it opened the door for double pensions and an increment in the expenses that the state has to incur for pensions.”
Nazim recommended the parliament committee to address the legal inconsistencies between the two legislations by means of dialogue with MPAO, with the aim of eliminating double pension while ensuring continuation of standard pension benefits for civil servants.