Three draft laws aimed at raising marriage grants for widows and eligible female pension beneficiaries across Bahrain’s civilian, social insurance and military pension systems were unanimously rejected by the Shura Council yesterday.
Members warned that the proposals clash with the kingdom’s post-2020 pension reform strategy and risk placing new strain on financially pressured funds.
Originally proposed by MPs, the amendments sought to increase the long-standing marriage grant, which supporters argued no longer reflects today’s living costs after remaining unchanged for nearly 15 years.
However, following consultations with the Social Insurance Organisation and the Military Pension Fund, the services committee concluded that the proposals – while socially motivated – lacked the actuarial and financial basis required for pension legislation.
“These proposals must be viewed within the broader legislative direction Bahrain has adopted to restore the sustainability of pension and insurance funds,” services committee vice-chairman Talal Al Mannai said.
He stressed that reforms introduced since 2020 have been designed as an interconnected package to control expenditure, align benefits with long-term sustainability and ensure the system can meet current and future obligations.
“Introducing isolated benefit increases outside this comprehensive framework undermines the philosophy upon which those reforms were based,” he added.
During deliberations, Mr Al Mannai said SIO officials revealed that although the proposed increase would affect only 50 to 80 cases annually, it would raise marriage grant costs by 34 per cent in the public sector and 61pc in the private sector, without any identified funding source.
The current annual cost of marriage grants already stands at around BD300,000 in each sector.
“The social impact of the amendment is limited compared to its financial impact on the pension funds,” Mr Al Mannai explained. “The current system already provides an adequate level of social protection.”
Committee rapporteur Hala Fayez said pension and insurance laws cannot be amended based on general considerations without precise financial studies.
“Any increase in benefits must be backed by clear actuarial assessments showing the fund’s ability to absorb the cost without affecting its commitments,” she said. “These proposals were not accompanied by such studies, which is a fundamental requirement.”
She also warned against frequent amendments to pension laws within short time frames.
“It is important to allow previous reforms to take effect before introducing new obligations,” she said.
Ms Fayez further cited the actuarial deficit facing pension funds as a key reason for rejecting the proposals in principle, saying that adding new financial burdens at this stage contradicts the objective of preserving long-term sustainability.
Meanwhile, legislative and legal affairs committee chairwoman Dalal Al Zayed voiced strong support for the services committee’s recommendation.
She also revealed that while some entities supported the proposals, relevant government bodies and the Supreme Council for Women expressed reservations and opposed the amendments.
“Today, the priority is not expanding benefits or raising ceilings, but ensuring that any text granting benefits is matched by available financial resources,” she said.
Ms Al Zayed added that Bahrain’s pension laws already include categories of beneficiaries not found in similar laws elsewhere and stressed the kingdom’s commitment to honouring all existing entitlements.
Following the debate, the Shura Council voted to reject the three draft laws and return them to Parliament for reconsideration.
mohammed@gdnmedia.bh
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