SIO: Unfunded Pension liabilities hit BD13.8 billion

TDT | Manama

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Unfunded pension liabilities have reached BD13.8 billion, the Social Insurance Organisation (SIO) said in its audited accounts for the year ending 31 December 2024, as actuarial projections point to fewer insured contributors for each pensioner over the next 50 years.

The SIO disclosed the figure in a written reply to a parliamentary question from MP Dr Muneer Seroor. It said the latest actuarial studies showed a marked fall in the contributor-to-pensioner ratio, and that financial sustainability measures indicated a gap between the fund’s assets and future financial obligations that are not funded.

The organisation said the rise in future unfunded liabilities was linked to benefits due and paid out exceeding the contributions collected. It also said the most recent reforms recommended by the actuary had not been carried out in full as one package, adding that full implementation would have improved financial sustainability and extended the fund’s lifespan.

The SIO said it was working through its asset management company, Osool, to secure the liquidity needed to meet pension obligations in the years ahead. It said it was focusing on investment opportunities suited to current conditions, particularly time deposits, treasury bills and fixed-income instruments.

Figures included in the reply showed changes in average monthly pensions across income brackets. The average pension for retirees receiving less than BD500 rose by about 10 per cent, from BD371 in 2022 to BD410 by the third quarter of 2025.

Over the same period, the average pension for retirees receiving between BD500 and BD1,000 fell by 3 per cent. For those receiving between BD1,001 and BD2,000, the average pension rose slightly from BD1,358 in 2022 to BD1,366 by the third quarter of 2025. For retirees in the BD2,001 bracket, the average pension stood at BD2,390 and fell to BD2,384 by the third quarter of 2025.

The SIO also listed the number of retirees’ dependants receiving a pension after the retiree’s death up to the third quarter of 2025. It put the figure at 19,177 in the under-BD500 bracket, 4,908 in the BD500 to BD1,000 bracket, and 1,008 in the BD1,001 to BD2,000 bracket. It also recorded 87 beneficiaries in the BD2,001 to BD3,000 bracket and 28 in the BD3,001 to BD4,000 bracket.