Efforts are underway to ensure the sustainability of Bahrain’s pension funds, a senior minister has said.
Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa told Parliament yesterday that the primary reason for the decline in pension fund assets was not investment losses, but rather the structural deficit between pension obligations and the income generated to cover them.
He stressed the need to bolster investments and recalibrate the balance between commitments and revenues to boost the fund’s sustainability.
Shaikh Salman added that, under the directives of His Majesty King Hamad and His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, the government continues to promote investment initiatives and employment programmes aimed at creating high-wage job opportunities for Bahrainis.
“The Bahraini citizen is the kingdom’s greatest asset,” he affirmed.
Shaikh Salman said that in 2022, government had presented tough measures to stabilise pension funds’ lifespan until 2078. However, MPs rejected them following which an agreement was reached to extend the funds’ lifespan until 2034.
The minister said an actuarial study on pensions was imminent and its findings would be submitted to Parliament, along with recommendations and proposed timelines.
“The government will continue to work transparently with Parliament,” he added.
Shaikh Salman highlighted the importance of ongoing collaborative efforts to secure the sustainability of the kingdom’s pension funds, describing it as a ‘shared national duty’.
His remarks came during a parliamentary session, in response to a question by services committee chairwoman MP Jalila Al Sayed regarding the periodic actuarial review of the Social Insurance Organisation.
Shaikh Salman clarified that Bahrain’s law mandates actuarial studies every three years, conducted by internationally recognised firms.
“The organisation is fully committed to preparing these reports on a regular basis,” he said.
He noted that the government’s role was to receive the reports and work with MPs to address their findings.
Shaikh Salman underscored the commitment of the organisation’s executive team to serving Bahrain, its citizens, and retirees, stressing that co-operation between the executive and legislative branches must continue in order to support the organisation’s management.
Top stories for today:
School probed
INDIA ATTACKS: Pakistan downs two jets after three killed
Green light for new corporate tax
&uuid=(email))