MP Mubarak Proposes Expanded Retirement Coverage for Government Employees

TDT | Manama
Email : editor@newsofbahrain.com

MP Basma Mubarak has introduced a draft law proposing an extension of optional retirement plan coverage for government employees, allowing them to continue contributing to the retirement system voluntarily after their service ends, provided they have completed at least one year of service.

Currently, retirement benefits are settled, and contributions cease upon an employee’s termination, unless otherwise stated. Mubarak’s proposal introduces a new clause that enables employees to maintain their retirement contributions even if they are no longer in service.

Under the proposal, employees who do not qualify for a retirement pension under existing laws may voluntarily opt into the retirement system. This requires submitting an application within one year of leaving service, before settling retirement benefits. Employees must cover their own contributions as well as the government’s portion, excluding work injury insurance. The additional contributions will count towards their total service years for retirement.

Sustainability and Flexibility
Speaking to The Daily Tribune, MP Mubarak explained the goals of the draft law: “This initiative expands optional insurance coverage to benefit more employees while ensuring uninterrupted growth of the retirement fund. By requiring both employee and government contributions, the fund will generate sustainable revenue even after employees leave service.”

The proposal also facilitates smoother transitions between public and private sector employment. It eliminates concerns about losing valuable insurance coverage or delays caused by administrative processes, empowering employees to re-enter the job market as employees or entrepreneurs with greater flexibility.