The Maldives Retirement Pension Scheme (MRPS) is a scheme that aims to ensure financial security for individuals during their retirement years. It provides a means for individuals to save a portion of their income during their employment to sustain their livelihood in retirement. The MRPS operates under the Pension Act of Maldives.
The MRPS, established under the Pension Act of Maldives, aims to encourage individuals to save a portion of their income during their working years, ensuring a comfortable lifestyle in retirement. Contributions amount to 14% of an employee’s pensionable wage, with a minimum of 7% contributed by the employer and the remaining 7% by the employee. Participants also have the option to make voluntary contributions, allowing them to save more towards their retirement funds.
Contributions collected through the MRPS are strategically invested to maximize their value and boost the retirement savings of scheme members. At the age of 65, participants become eligible to access their pension plan, with the amount received determined by the balance in their Retirement Savings Account (RSA).
In an effort to promote inclusivity, the MRPS is not restricted to Maldivian citizens alone. Foreign nationals and self-employed individuals working in the Maldives have the opportunity to voluntarily join the scheme, ensuring a broader base of participation and greater retirement security for all.
The scheme offers flexibility in terms of investment choices, allowing members to select between two funds: the MRPS Investment Fund and the MRPS Sharia Fund. The Investment Fund diversifies investments across various assets, including treasury bills, treasury bonds, corporate bonds, equities, and bank deposits. Meanwhile, the Sharia Fund provides an option for members to invest in Sharia-compliant assets such as GIAs (Fixed Deposit) and Corporate Sukuk (Sharia Bonds).
To ensure transparency and ease of access, the Maldives Pension Office has developed an online platform where members can conveniently check their RSA statements, verify account balances, and stay informed about contributions and activities. Printed statements are also available upon request.
The MRPS empowers individuals to plan for their retirement and take control of their financial future. By implementing this initiative, the Maldives government aims to promote long-term financial security and ensure a comfortable retirement for its citizens and residents alike.
