Bahrain Shura Council Reviews and Rejects Proposed Amendments to Retirement and Social Insurance Laws

TDT | Manama

Email: mail@newsofbahrain.com

His Excellency Ali bin Saleh Al Saleh, Speaker of the Shura Council, chaired the 24th session of the Council in the fourth term of the sixth legislative chapter yesterday (Sunday), in the presence of His Excellency Ghanem bin Fudhel Al Buainain, Minister of Parliamentary Affairs.

The session began with the approval of the minutes of the previous meeting. The Council then received messages from His Excellency Ahmed bin Salman Al Muslim regarding the outcomes of the Council of Representatives’ review of Decree-Law No. (37) of 2025, amending Article (161) of the Central Bank of Bahrain and Financial Institutions Law (Law No. 64 of 2006). The matter was referred to the Financial and Economic Affairs Committee, with notification to the Legislative and Legal Affairs Committee.

The Council also reviewed questions submitted to the Minister of Parliamentary Affairs by Dr. Bassam Ismail Al Bin Mohammed regarding a study on the feasibility of a four-day work week, and to the Minister of Transportation and Telecommunications by Mr. Khalid Hussain Al Masakati regarding measures to regulate transport for workers without private vehicles. Responses were provided by the respective ministers.

The session then discussed three reports from the Services Committee on draft laws amending:

1. Article (87) of Law No. (13) of 1975 on Government Employees’ Pensions and Retirement Bonuses.
2. Article (41) of the Military Pensions Law issued by Decree-Law No. (11) of 1976.
3. Article (90) of the Social Insurance Law issued by Decree-Law No. (24) of 1976.

Mr. Talal Mohammed Al Mannai, the committee’s rapporteur, presented the justifications for recommending against the first draft law, citing that the proposals contradicted the legislative approach agreed upon by the executive and legislative authorities in recent years to reform pension and social insurance systems.

Ms. Hala Ramzi Faiz presented the committee’s stance on the second and third draft laws, aligning with the same reasoning. The committee emphasized that the proposed amendments, which aimed to increase marriage grants for certain beneficiaries, diverge from the reform principles of maintaining financial sustainability, rationalizing expenditure, and preserving the pension system’s ability to meet present and future obligations.

The committee highlighted that any increase in pension benefits must be based on solid financial and actuarial studies to determine their impact on the fund’s financial position. Since the submitted draft laws lacked technical assessments of costs and effects, they failed to meet essential legislative standards. Additionally, frequent amendments to pension and social insurance legislation can disrupt financial and actuarial balances, making stability in legislative policy essential.

Given the actuarial deficits facing the funds and the potential financial burden of the proposed amendments, the Council decided not to approve the three draft laws in principle and referred them back to the Council of Representatives for reconsideration.