Bahraini MPs propose raising retirement beneficiary age; Nay say SIO

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

A proposal to raise the retirement age for beneficiaries has sparked a debate among various bodies in Bahrain regarding its potential societal impact.

Recording its objection, the Social Insurance Organisation (SIO) has cautioned that such a measure might inadvertently foster dependence on retirement benefits rather than encouraging continued employment as a means to secure pensions.

SIO also called for conducting a closer examination of the implications for retirement planning and financial independence before making a move.

The proposal, scheduled for voting this Tuesday (March 19), will amend Article 27 of Law No. 13 of 1975 regulating retirement benefits for civil servants.

It has been introduced by MPs Khalid Buanq, Ahmed Al Saloom, Basma Mubarak, Hanan Fardan, and Hassan Ibrahim.

They argue that such a measure is necessary to ensure a decent standard of living for beneficiaries, aligning with the evolving social and economic landscape.

Currently, retirement benefits cease for a son at the age of 22 and for enrolled students pursuing university or higher education until the age of 26 or upon completion of studies.

The proposed amendment seeks to extend these limits to 24 and 28 years, respectively.

The Financial and Economic Affairs Committee of Parliament, responsible for reviewing the amendment, believes that this change will enable adaptation to labour market dynamics while promoting continued education.

Furthermore, it anticipates that the amendment could facilitate the creation of suitable job opportunities for citizens.

However, the Social Insurance Organisation (SIO) has expressed opposition, citing concerns that the proposal may contradict fundamental principles of retirement and insurance systems, particularly regarding work and fund contributions.

It emphasises the risk of creating societal groups overly reliant on retirement benefits rather than pursuing employment for retirement pensions.

The SIO has underscored the necessity for a specialised study to assess additional financial costs and identify funding sources should the amendment be enacted.