The People’s Majlis has commenced debates on an amendment to the Pension Act that would permit individuals to utilize their pension funds to cover medical expenses for life-threatening or terminal illnesses.

The bill was introduced to today’s parliamentary session on behalf of the government by Hassan Mufeed Abdul Qaadir, the PNC Member for Milandhoo constituency.

According to the bill, the primary objective of this amendment is to establish a legal framework and procedures for the disbursement of pension funds to individuals diagnosed with a terminal illness. The bill defines a terminal illness as a medical condition where a specialist doctor determines that the individual is unlikely to survive for more than 12 months, even with appropriate medical intervention.

Key provisions of the proposed amendment include allowing individuals to apply for the release of their pension funds for medical treatment in the event of a terminal illness, regardless of whether they have reached the retirement age. The amendment specifies that there shall be no obstacles to releasing these funds, whether in a lump sum or in installments.

Furthermore, the bill proposes that individuals whose income exceeds the amount received as the basic old-age pension will no longer be eligible to receive the basic pension.

In addition to medical benefits, the amendment proposes that pension funds be utilized to reserve slots for the Hajj pilgrimage. Under this proposal, if an individual pays 20 percent of the total cost to the Hajj Corporation, the remaining 80 percent can be settled using the funds available in their pension account.