Shura set to debate bill on rejection of marriage grant increase

TDT | Manama

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Three draft laws to raise marriage grants for widows and other female pension beneficiaries are due to be rejected by the Shura Council on Sunday.

The Services Committee stated that the additional cost would put extra pressure on pension funds.

The council will debate reports calling for rejection in principle of proposed changes to Article 90 of the Social Insurance Law under Decree-Law No. 24 of 1976, Article 87 of Law No. 13 of 1975 on pensions and retirement rewards for government employees, and Article 41 of the Military Retirement Law under Decree-Law No. 11 of 1976.

The bills were put forward to raise the grant after about 15 years without change, with the reports saying the current amount no longer keeps pace with living costs.

But the Social Insurance Organisation (SIO) told the committee that the funds already face a wide gap between income and spending, even after pension reforms in recent years.

Grant

It said any rise in the grant, though limited on its own, would still weigh on the funds in light of an actuarial shortfall and future liabilities without a lasting source of funding.

Figures placed before the committee showed the change would raise costs by 34 per cent in the public sector and 61 per cent in the private sector.

The average yearly cost of the marriage grant stands at about BD300,000 in the public sector, with a roughly similar sum in the private sector.