Lawmaker proposes law for continued retirement contributions after service

TDT | Manama

Email: mail@newsofbahrain.com

MP Basma Mubarak has proposed a new law that would allow government employees to voluntarily continue contributing to the retirement system after they leave service, even if they only worked for one year. Currently, the law stops retirement benefits and deductions when an employee’s service ends, unless specified otherwise.

Mubarak’s proposal introduces a new clause stating that if an employee leaves service and is not entitled to a pension under existing retirement or insurance laws, they can still choose to remain in the retirement system, as long as they have at least one year of actual service. To do so, they must apply within one year of their service ending, before their retirement benefits are settled.

The employee would need to pay all outstanding contributions, matching both their own contribution and the government’s share, excluding the work injury insurance. Their additional contribution period would count towards their total service years for retirement, following procedures set by the ministry.

In an interview with the Daily Tribune, MP Mubarak explained the rationale behind the proposal: “This draft law expands the option of voluntary insurance. Previously, mandatory insurance participation required at least one year of service. Optional insurance gives employees the chance to keep contributing, ensuring continuous revenue for the retirement fund. It also supports employees in transitioning between the public and private sectors, ensuring their insurance coverage remains intact without delays or losing valuable service years.”