Objective is to provide basic financial security – Nasheed

22 November 2007
Report: Ayya

Minister of Legal Reform Information and Arts have said that the basic objective of the Bill on Pension currently under consideration of the Majlis, is to afford basic financial security for the people who are in government service or who has retired from government service as well as to the elderly.

He made the statement while introducing the Bill at the Majlis session held yesterday. Nasheed said the Bill was drafted to meet the standards laid down by the World Bank, after evaluating various pension schemes in use across the world.

“If we follow such a pension scheme as proposed, it would provide many benefits to the country’s economy” said Nasheed.

Nasheed said the Bill is aimed at providing economic and social protection to the people to two groups of people. One such group is the elderly who has no means of income. The Bill will allow the government to provide a monthly income for such people and the other group is those who retire after serving the government. The Bill when passed would allow the government to provide monetary gains so that he or she can lead a dignified life.

“The scheme is designed on the principle where the employee puts a certain amount of his salary to an account and the employer is also required to an equivalent amount in the account, and once he retires that money will be used to provide to him the necessary funds in a specified manner” said Nasheed.

Minister Nasheed further said in order to monitor and manage the pension scheme the Bill proposes to establish a Pension Authority and a Board under which the Authority would be managed.