Parliament approves pension fund access for terminally ill patients

The Parliament, on Thursday, approved a major amendment to the Pension Act, allowing individuals battling terminal illnesses with no medical hope of surviving beyond one year to access their pension funds for treatment expenses.

Under the current law, pension funds may be withdrawn for Hajj expenses, while access for medical treatment and other purposes remains restricted. Pension payments also only commence upon reaching the age of 65.

The report by Parliament’s Committee on Independent Institutions, following its review of the bill, was passed with majority support in a 61-8 vote, with one member abstaining.

The government-backed bill, sponsored by PNC’s Milandhoo MP Hassan Mufeedh Abdul Qadir, states that individuals undergoing treatment for terminal illnesses, who have been medically advised that they are unlikely to survive beyond one year, will be eligible to access their pension savings.

Such individuals will be permitted to withdraw their pension funds regardless of age, either as a lump sum or through installments.

The amendments are expected to strengthen benefits and improve public convenience under the pension system, particularly by enabling faster financial assistance for individuals facing serious medical conditions.