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VIDEO | Preparations are underway for the Public Service Pension Fund, which will include gathering contributions, managing investments, and distributing retirement benefits.

Uganda Media Centre

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18,161 views • 1 month ago •via X (Twitter)

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It seems Amaany doesn’t fully understand how pensions work. Mohamed Nasheed didn’t introduce 5,000 MVR old age benefit as a permanent allowance for all Maldivians. Before his time, there was no contributory retirement pension system. So, he introduced one (7% employee, 7% employer), along with the 5,000 MVR benefit as an immediate measure to support those who weren’t receiving any retirement pension. Cause back then only gov employees were getting it. The idea is that everyone should contribute to their retirement pension fund while they are working. The full benefits of this system will be felt in about 50 years, when most people will receive a pension from their own savings. Only a small percentage of people, those who are not part of the retirement pension, will continue receiving the 5,000 MVR from the gov. In 50 years, parents won’t have to depend on the gov or their children for financial support in old age. They will be funding their own retirement through the pension system. So, the 5,000 MVR old age benefit is not a permanent allowance for everyone. It was designed to help those who wouldn’t otherwise have a pension and over time, fewer people will rely on it. This is a sustainable system. Cause people fund their own retirement from own savings.

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