MPs are set to vote on a proposal to reinstate lifetime pensions for elected and appointed public representatives, during their weekly session on Tuesday.
They are also seeking annual increases to the pensions of elected and appointed public representatives similar to others in the private, government and military sectors.
The proposed legislation further seeks to remove the BD4,000 monthly cap on their pensions.
A bill that overhauled pension packages, with trimmed benefits for elected and appointed officials, was approved in October 2018 by both Parliament and the Shura Council.
Before that, representatives qualified for a lifetime pension equivalent to 50 per cent of their monthly wage after serving a four-year term, 80pc after serving two terms and 90pc for three or more terms – in addition to a regular state pension.
Now, they qualify for a one-month bonus for each year in service during the four-year term.
The 2018 rules for public office positions do not apply to those who held such roles before the measure was adopted – meaning only those coming to office from 2018 have been affected.
As a result, long-serving representatives elected before and after the rule fall within both categories as they get ongoing pensions, in addition to bonuses.
In April this year, Shura Council members unanimously rejected the bid to reinstate the 2009 MPs, municipal councillors, Shura Council and Capital Trustees Board members’ Pay and Pension Law, presented by former MPs who served from 2014-2018.
Parliament’s services committee has also recommended that their colleagues reject the move.
The Cabinet has warned in writing that the proposed legislation would mean the government would have to pump in huge amounts of money to make up the difference in the Social Insurance Organisation (SIO) at a time it is trimming deficits.
“Also, it is not a one-off payment and special continuous financing would be necessary from the national state budget,” it added.
The SIO has also warned of a long-term damage to its coffers, if the move is given the go-ahead.
Parliament’s legislative and legal affairs committee voiced the same concerns, acknowledging that only a few remain as beneficiaries since 2002, which they believe is manageable.
An ‘end-of-service’ bonus for former public representatives was transferred to their bank accounts in August last year. The monthly wages adding up to BD4,250 for regular MPs and Shura Council members include BD2,000 basic salary, BD1,200 representational allowance, BD300 social allowance and BD750 for car instalment.
The first and second vice-chairmen in each chamber receive BD500 more, while Parliament Speaker and the Shura Council Chairman receive BD1,000 extra.
The bonus includes all allowances except for the car instalment. It means that MPs and Shura Council members received BD14,000 (BD3,500 per month) as a one-time bonus. First and second vice-chairmen received BD16,000 (BD4,000 per month), and BD18,000 (BD4,500 per month) for both Parliament Speaker and the Shura Council Chairman.
Municipal councillors and Capital Trustees Board members earn BD1,500 a month without any allowances. Vice-chairmen receive BD1,800 without any allowances while chairmen take home BD2,000 with a BD300 car allowance.
It meant that members received BD6,000 as bonus, vice-chairmen BD7,200 and chairmen BD8,000, excluding the car allowance.
The payouts cost the government around BD1.130 million.
Under a decree issued by His Majesty King Hamad last year, public representatives who lose their seats are allowed back to their original workplaces in the same positions or higher.
Meanwhile, Parliament is also set to vote on the line-up of three new probe committees on Gulf Air, besides outsourcing and Bahrainisation in the private and government sectors. The three probe committees were approved for formation during Parliament’s session last week.
MPs are also set to vote on an aviation agreement with Chile drafted urgently by the government.
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