Basic Pension

Basic Pension is a lifetime pension benefit paid to all Maldivian citizens who reside in the Maldives and has reached 65 years of age. From March 2019, Basic Pension Amount is MVR 5000. For pensioners receiving pension from Maldives Retirement Pension Scheme (MRPS) and other state funded pension schemes, the following deductions will be made from their Basic Pension Amount:

• 50% of amount received from MRPS
• 100% of other pension amount

Eligibility

Every Maldivian citizen who meets the following conditions is eligible for Basic Pension:

1. Must be a Maldivian citizen residing in the Maldives
2. Must be 65 years or older
3. He/she SHOULD NOT be in the full time care of the State or incarcerated upon conviction
4. He/she SHOULD NOT receive more than twice the amount of Basic Pension as pension from MRPS
5. He/she SHOULD NOT receive more than MVR 5000 as pension from any other state funded pension scheme

Application Process

When and how to apply

Basic Pension is provided to senior citizens who apply for this pension. Application form can be submitted 6 months prior to reaching 65 years of age. If the applicant is above 65 years of age at the time of submitting pension application form pension deposits will start from the month of receipt of application. Back payments will not be allowed for the elapsed period.

Up to January 2015, back payments were allowed for a period of 12 months from the date of application. However, with the amendment to Regulation on Basic Pension this practice was stopped.

Checklist 

Before starting to fill the application form please ensure that:

• The applicant is eligible for Basic Pension
• The applicant has the National ID card
• The applicant has an active bank account opened in the applicants name in a bank operated in the Maldives

Special Cases

If the applicant is unable to apply for Basic Pension or unable to open a bank account due to ill-health his/her legal guardian may initiate the application process by requesting Pension Office to allow the legal beneficiary or guardian to apply and withdraw pension benefits of the person whose health condition does not permit him/her to fulfil the formalities required to apply for pension or withdraw pension benefits. Such requests shall be made in writing with supporting medical documents. 

Application form

‘Pension applicant’s information form' can be downloaded from Pension Office website www.pension.gov.mv and is available from Pension Office reception and island/atoll council offices. Forms can be submitted:

• Directly to Pension Office reception
• By post
• Through island/atoll council offices
• By email (only for single account holders)

No supporting documents are required to be submitted with the application form.

Acknowledgement

The receiver (Pension Office/Council office) of the application provides an acknowledgement (the slip provided in the application form) of receipt to the applicant. The applicant must keep this acknowledgement slip until the first pension payment is received.

Payout Process

Data entry

Applications submitted with correct and complete information are entered into Pension Management System within 3 days of receiving the application.

Notifications

If there are any inconsistencies in the information provided in the application form, the applicant will be notified. If any critical information such as bank account number is missing or if there is incorrect information the application is rejected and applicant is notified.

Bank Account verification

Step 1: Bank account information provided in the application is verified against information available with the respective banks  

Step 2: Forms received up to the last day of the previous month are sent for verification during the first week of the following month

Step 3: Applicant is informed of any inconsistencies in the bank account information identified during the verification process and requested for corrective action

Arranging funds

Pension Office request for fund by raising an invoice to the Ministry of Finance and Treasury (MOFT) and MOFT arranges fund during the last week of the month.

Deposits to Accounts

Pension Office instructs banks to deposit monthly pension amounts to individual pensioner’s bank account during the last week of every month.

Basic Pension Amount

Basic Pension amount specified in the Pension Act is MVR 5000. However, for pensioners receiving pensions from Maldives Retirement Pension Scheme and Other State Funded Pension Schemes the following deductions will be made from their Basic Pension Amount: 

• 50% of the amount received from MRPS
• 100% of other pension amount

Scenarios given below show how Basic Pension is calculated based in different instances. 

Scenario 1: Receives MVR 10000 from Maldives Retirement Pension Scheme. 

How Basic Pension amount is calculated: Not eligible. 

Scenario 2: Receives MVR 5000 from a state-funded pension scheme. 

How Basic Pension amount is calculated: Not eligible.

Scenario 3: Receives MVR 5000 from MRPS and MVR 3000 from a state-funded pension scheme. 

How Basic Pension amount is calculated: (5000- (5000*50%)-3000) = -500

Total from all schemes: 5000+3000 = 8000 

Scenario 4: Receives MVR 5000 from MRPS. 

How Basic Pension amount is calculated: 5000- (5000*50%) = 2500

Total from all schemes: 5000+2500 =7500 

Scenario 5: Receives MVR 3000 from state-funded pension schemes.

How Basic Pension amount is calculated: 5000-3000 = 2000

Total from all schemes: 3000+2000 = 5000 

Instances where Basic Pension can be stopped

• Pensioner becomes non-eligible for Basic Pension from a particular date
• Due to issues related to bank account
• To recover any overpayments

Checking Status of Pension Payment

All pension payments are deposited to individual pensioners' bank accounts during the last week of every month. Pensioners may check their bank accounts to ensure that the correct pension amount has been deposited to their designated bank accounts.

Reporting delays and inconsistencies in Pension Amount

If there are any delays in receiving pension payment or any inconsistency in the amount received the pensioner may contact Pension Office in one of the following ways and check the status of the payment.

• Phone
• E-mail
• Livechat

Filing a Complaint

In case where Pension Office fails to deposit monthly pension amount or correct the inconsistency in pension amount, within one month after bringing the matter to the attention of Pension Office, pensioner may officially lodge a complaint by submitting a ‘complaint form’. This form can be downloaded from Pension Office website www.pension.gov.mv and is available from Pension Office reception.

It is advised to contact Member Services department for assistance and clarifications (Phone 1441 or e-mail: [email protected]) before filing a complaint.

Demise of a Pensioner

In case of death of a pensioner his/her legal guardian is required to report his/her death. Pension payments will be stopped from the month following his/her death. Any amount deposited to his/her bank account due to delay in reporting or recording death must be returned to Pension Office. Legal actions will be taken to recover overpayments.