Parliament needs to resolve double pension, MVR 2.96 bil spent on pension: Nazim

According to the Deputy Speaker of the Maldives Parliament and Dhiggaru MP, Ahmed Nazim, the government has spent MVR 2.96 billion on pensions over the past 13 years, and added the parliament needs to take the initiative in resolving the double pension issue.

At the Public Accounts Committee of the parliament, Nazim said that all the information collected by Maldives Pension Administration Office (MPAO) had been shared with the legislative body in assisting with the government’s ongoing cost cutting efforts.

The information shared from MPAO further revealed the primary issue related to pensions is the origin and prevalence of double pension. Nazim highlighted that though the Pension Act was implemented in 2009, an interim policy on pensions was implemented under the Civil Service Act 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,” Nazim highlighted the legislative provision which precedes the Pension Act.

Although pension payments were being made under the Civil Service Act, Nazim stated that the relevant state authorities opposed accepting the Pension Act as the specific legislation regarding retirement benefits mentioned in the Civil Service Act.

“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,” Nazim commented.

“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 that the Public Accounts Committee address the legal inconsistencies between the two legislations through dialogue with MPAO, with the aim of eliminating double pensions while ensuring continuation of standard pension benefits for civil servants.

He also stressed on expediting the efforts on resolving the matter, and noted that double pension was not sustainable for the state.

“Since MPAO began extending pension benefits in 2011, a total of 17 government authorities had spent MVR 2.96 billion in pension payments as of February 2025. The senior citizens demographic is continuing to increase in the Maldives,” Nazim added.

The Deputy Speaker highlighted the need for a long-term solution in managing pensions to ensure sustained disbursement of pension benefits, and added that failure to make such adjustments would result in an impediment to said benefits in the future.

Other members of the Public Accounts Committee – which consists mainly of ruling People’s National Congress (PNC) members – had also agreed for the need of a resolve on the issue.

The issue of double pension has been long since highlighted by various financial institutions, while an Auditor General’s Office report in 2015 had recommended taking measures in eliminating the practice at the earliest possible date.

Besides this, both the World Bank and International Monetary Fund (IMF) had recommended discontinuing double pensions to accentuate the government’s continued efforts for sound fiscal sustainability.

The current administration earlier in December last year announced its formal decision to eliminate double pension, but later reneged.