President approves amendment permitting pension access for terminally ill patients

The President has approved an amendment to the Pensions Act allowing individuals diagnosed with terminal illnesses, with no medical expectation of surviving beyond one year, to withdraw money from their pension funds to cover treatment expenses.

The bill was passed at the 19th sitting of the first session of the 2026 Parliament, held on Thursday, 14 May 2026.

The Sixth Amendment Bill to the Pensions Act introduces revisions to the rules governing the basic pension, the conditions under which pension funds may be accessed, and measures to further strengthen the Pension Office and the overall pension system.

Under the amendment, pension funds may be withdrawn in cases of “terminal illness,” defined as a medical determination that the individual is unlikely to survive more than one year despite treatment.

The amendment also states that individuals whose income exceeds the basic pension threshold for the elderly will not be eligible to receive the basic pension.

Previously, pension savings could be used as collateral only for down payments on completed flats.  

The new amendment expands this, allowing pension funds to be used as collateral for home construction and repairs. In addition, the bill permits the use of pension funds to reserve Hajj slots in advance.

The bill also introduces several administrative reforms aimed at strengthening the implementation of the Pensions Act.

The Sixth Amendment to the Pensions Act of Maldives has now been approved by the President and published in the Government Gazette.