Majlis approves use of pension fund to buy homes
The People’s Majlis voted unanimously Tuesday to amend the Pension Act to allow members of the Maldives Retirement Pension Scheme to collateralise their savings to make down-payments under state-run home ownership or social housing programmes.
21 Apr 2016, 9:00 AM
The People’s Majlis voted unanimously Tuesday to amend the Pension Act to allow members of the Maldives Retirement Pension Scheme to collateralise their savings in home ownership programmes.
According to the amendments submitted on behalf of the government by MP Ibrahim Falah, an employees’ retirement savings account can be collateralised to make down-payments for housing loans to pay for newly built or old homes. But it cannot be used to pay interest on loans or for any other purposes.
In cases of default, a members’ balance will be released to the finance provider.
A chapter was added to the 2009 law authorising the Maldives Pension Administration Office’s board to formulate regulations outlining the down-payment collaterisation procedure. The rules must be enacted within three months after the president ratifies the amendments.
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