MPs propose law for annual pension increases

TDT | Manama

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A group of MPs, led by MP Khalid Buanq, have proposed a new law to guarantee the funding of annual increases to pensions under any retirement or insurance scheme. The proposal aims to ensure these increases until surpluses are achieved in both the Social Insurance Organisation (SIO) and the Military Retirement Fund. The proposed amendment would add a new clause (8) to paragraph (j) of Article (8) of Decree-Law No. (78) of 2006 concerning unemployment insurance. This clause would mandate the funding of annual pension increases until both funds reach a surplus, while respecting clause (h) of the same article. The explanatory memorandum accompanying the proposal emphasizes the importance of annual pension increases for maintaining a decent standard of living for retirees, particularly in light of inflation and rising living costs.

The MPs argue that the proposal strengthens social solidarity and ensures the financial and social stability of retirees, aligning with the principles of the Bahraini Constitution. The memorandum outlines the proposal’s objectives: improving the living standards of retirees, guaranteeing annual increases to ensure a dignified life, and enhancing the financial sustainability of the retirement system by utilising surpluses from the unemployment insurance fund.