Early withdrawal proposals “detrimental” to survival of pension scheme, regulator claims

CMDA Director General Mariyam Visam today told Minivan News that the proposed amendments to allow public and private sector staff to make early withdrawals from their pension schemes to cover costs of pilgrimages, home finance and starting businesses creates a “fundamental problem” that potentially could invalidate the program’s long-term sustainability.

The comments were made in response to Civil Service Commission (CSC) claims that a majority of public sector workers were in support of the proposed amendments to the Pension Act forwarded by Guraidhoo MP Ibrahim Riza – while also backing additional mechanisms for early withdrawals.

According to local media, the purposes by which early withdrawals could be made under the MP’s amendments include funding a Hajj pilgrimage, undertaking higher education, property building, seeking medical treatment abroad or establishing a businesses.