MPS have rejected all 17 points put forward by the government as part of its plan to overhaul the country’s pension rules.
The decision was taken yesterday during an urgent meeting that was attended by up to 20 MPs and headed by a four-member negotiating team that represents parliament in a joint committee along with the Shura Council and the government.
During the meeting, which was held at the National Assembly Complex in Gudaibiya, MPs drew up their own outline for the restructure and will present it at the next joint committee meeting.
Joint meetings between representatives from all three bodies will resume next week after pension experts present their opinion on how the system should be overhauled.
Parliament first vice-chairman Ali Al Aradi, who heads the negotiating team, said the government plan did not address the core issues with the existing system such as monitoring the three pension funds that cover the private, public and military sectors.
He also explained that it was essential for the Administrative and Financial Audit Bureau to scrutinise decisions made by the board of the Pension Fund Authority, which was not addressed under the government proposal.
“We would like to express gratitude to the government delegation for their vision and treatment methodology, which we believe is fine but is not enough and doesn’t actually address core problems,” he said.
“The 17-point plan doesn’t impose proper monitoring on the pension funds and allows them to be run without the public having any proper say.
“So, whatever parliament will draw up to counter the government plan will be based on the foundation that the decisions by the Pension Fund Authority’s board should be scrutinised by the Administrative and Financial Audit Bureau.
“While also ensuring that the Finance Minister, who is responsible for the board, should be under parliament’s scrutiny.
“We are working to complete the counter plan so it is ready for debate at the upcoming three-way meeting next week.”
The joint committee last month reached verbal consensus on two articles of the 17-point plan, however, since MPs threw out the entire plan yesterday it means that even these two points were rejected.
They would have seen the pensions of government ministers, legislators, Capital Trustees Board members and municipal councillors calculated based on the exact years of service similar to the system used for civil servants.
Under the existing pensions system, ministers are eligible for 80 per cent of their salary even if they are on the job for only one year, while the rest receive 50pc of their monthly wage after serving a four-year term.
The negotiations come as MPs in July unanimously voted against amendments to the 2008 Pension Fund Authority Law and the 2010 BDF and Public Security Pension Fund Law that would have given the government authority to alter pension rules without input from the National Assembly.
Parliament claimed the amendments were unconstitutional and would result in a lack of accountability; but Shura Council disagreed and approved the bill.
This prompted parliament chairman Ahmed Al Mulla to refer the amendments to His Majesty King Hamad, who ordered a consensus to be reached through talks on the overhaul of the pension system.
mohammed@gdn.com.bh
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