Summary of changes to Pension disbursement rules for foreign employees

13 October 2023

Under the first amendment to the Regulation on enrollment and disbursement of benefits to foreign employees  (Regulation No. 2023/R-165),  the following changes have been made to the pension disbursement process for foreign employees, effective 12th October 2023.

• Foreign Nationals below 65 years of age, departing permanently from the Maldives, can apply to withdraw the fund in their Retirement Savings Account (excluding  the government recognition bonds), at any time following their decision to leave.

• Applications to withdraw funds in the Retirement Savings Account must be submitted using the prescribed application form or electronically as approved/facilitated by the Pension Office. 

• Members who withdraw funds before reaching pensionable age can resume contributions to MRPS should they decide to return to Maldives for employment.  However, funds thus accumulated can be withdrawn when the member reaches Pensionable age (65 years). 

• The legal heirs of a deceased member can claim the funds in his/her RSA. Such requests must be made using the prescribed application form. Supporting documents to confirm the death of the member, legal heirs of the member and court decisions confirming the legitimacy of petitioner(s)' claim to receive the funds must be submitted with the application. 

• Funds will be released in Maldivian Rufiyaa and deposits will be made to a Maldivian Rufiyaa Account  in a bank operating in the Maldives. The account must be an account belonging to the applicant (legal heirs in inheritance cases) or a nominee appointed by the applicant. 

• If the applicant is appointing a nominee , the applicant must provide a notary attested declaration in the application form confirming that the decision to appoint the nominee was intentional.