A new fund to support pensioners could be set up in Bahrain, if MPs have their way.
The proposed legislation by MP Dr Ali Al Nuaimi seeks to establish the ‘Retiree financial support account’ ... a dedicated facility funded by a levy of $1 per barrel of crude oil exported from Bahrain when its price exceeds $40.
The collected amount would be used to provide financial support to retirees on an annual basis, based on their income levels.
The MP believes his initiative would address the growing financial challenges faced by pensioners and provide a means of easing their cost of living, particularly in light of rising expenses related to housing, food and other basic needs.
The draft law consists of six key articles. The first article stipulates that $1 will be deducted from each barrel of crude oil exported, once its price surpasses $40.
The second calls for the Finance and National Economy Ministry to open a dedicated account to track and manage the funds.
Article three mandates the ministry to invest the funds to generate returns.
Article four outlines that the Social Insurance Organisation (SIO), in co-ordination with the ministry, will distribute the annual financial support to retirees.
Article five assigns the ministry with the responsibility to issue necessary decisions for the law’s implementation while the sixth article provides for the execution of the bill.
Parliament’s legislative and legal affairs committee and financial and economic affairs committee have backed the proposal.
However, Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa has called for a rethink.
He expressed concerns that establishing dedicated funds for specific purposes could disrupt the principle of budgetary unity.
The minister also pointed out that the government has been actively exploring options to restructure existing financial support programmes for low-income groups, which may address the same goals as the proposed law.
The Military Pension Fund noted that while it appreciated the legislative efforts to support retirees, the proposal falls under the government’s discretion.
The fund stressed its ongoing commitment to safeguarding the financial and social security of military pensioners through established mechanisms and highlighted the importance of maintaining sustainable financial practices to ensure the continued fulfillment of its obligations to retirees.
Al Hekma Retired Society welcomed the proposal, while also pointing out that the amount suggested as a one-off financial reward was similar to the current annual increase of pensions by around three per cent.
The society suggested that it might be more effective to reintroduce the annual raise, instead of providing a lumpsum payment.
Dr Al Nuaimi
Dr Al Nuaimi expressed his concern for the welfare of retirees ‘who have given so much to the country’.
“This proposal aims to tap into Bahrain’s natural resources to support those who helped build our nation,” he said. “The idea is to create a sustainable source of funding that can relieve the financial pressures pensioners face without burdening the state budget.”
Meanwhile, MPs are set to vote on two government-drafted legislations – a mutual maritime agreement with Kuwait, and amendments to the 2002 Fishing Organisation, Catching and Protection Law that would allow boat captains to take relatives up to the third degree on board without them being considered as crew.
The Cabinet and Oil and Environment Ministry have backed the move in concept. The Supreme Council for the Environment said new organisational methods were being formulated to address the issue.
mohammed@gdnmedia.bh
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