Pension hike rejection irks MPS
Manama : Parliamentarians yesterday strongly denounced a Government decision to discard annual pension hike.
This comes as the Government rejected a proposal stipulating 3 to 4 percent annual hike in pension payment to employees in the public sector as suggested by lawmakers.
During the weekly session held in Gudaibiya yesterday, several MPs vented their ire at the decision.
MP Abdulrahman Bumjaid questioned the Government’s justification to reject the proposal. “The government is saying there are now insufficient funds to cover this increase. This makes us ask about the profits made by the Pensions Fund,” Bumjaid said.
Sharing a similar opinion, the Council’s Economic and Financial Committee Deputy Chairman Mohammed Al Ahmad said, “We understand that our proposal brings additional expenses. But shouldn’t the government be more concerned about the millions of wasted Dinars rather than the pension expenses.” “This rejection by the government leaves us in a fix. What should now we possibly do to enhance their living standards?” laments Al Ahmad.
MP Jalal Kadhem pointed out that the 4pc increase is not substantial. In defence, he also noted that “pensions are periodically increased by 7 to 8pc in the neighbouring GCC countries”. Voicing his rejection on the issue, MP Mohsen Al Bakri said, “Pensioners are being treated unfairly and their pensions must be revised”. “The cost of implementing this proposal isn’t huge. It may even be less than the miscellaneous expenditure of a minister,” he said.
On a different note, MP Mohammed Al Ammadi pointed out that the matter should be referred to the Government as a draft law and not as a proposal, if we really want to make this happen.
He insisted that “MPs are utilising the wrong legislative jurisdictions. We need a law that stipulates this increase.”
Revenue: BD103m, Expense: BD202m
The revenue generated by the Pension Fund is insufficient to meet the expenses in this regard, the session was told.
“Until last September, the revenues of the fund haven’t crossed BD103 million, while pension requirements in the same period were above BD202 million,” said Shura Council and Representatives Council Affairs Minister Ghanim Al Buainain.
He was speaking on behalf of the Government during the session.
Responding to the queries, the minister said the effort is on maintaining such a key fund for the longest period possible.
The minister also emphasised: “Rejecting the proposal doesn’t mean that the Government isn’t concerned about enhancing the situations of pensioners.”
Al Buainain said the decision was taken considering “the deteriorating financial conditions of the Pensions’ Fund.
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