Bahraini Retirees make up ‘11pc of citizenry’

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Pensioners make up nearly 11 per cent of the Kingdom’s Bahraini population, according to the latest statistics provided by the Social Insurance Organisation (SIO).

There are 74,303 alive pensioners – 40,304 in the private sector and 33,999 in the public sector – while the number of deceased pensioners stood at 13,400, 7,515 in the private sector and 5,885 in the public sector.

Other than pensioners, children topped the list of beneficiaries (47.5pc) followed by widows (40pc) and others (12.5pc).

The ‘others category’ included father, mother, brother, sister and grandchildren.

Two years ago, His Majesty King Hamad bin Isa Al Khalifa issued Decree-Law 21/2020 regarding pension funds in insurance and retirement laws and regulations, according to which the Pension and Social Insurance Fund shall be overseen by the Social Insurance Organisation.

The revenues of the Pension and Social Insurance Fund include those previously allocated for the public sector retirement fund and the Social Insurance Fund, in addition to those incurred from the investment of its funds or any other activities.

The Decree-Law stipulates the cessation of the annual rise in all pensions established under any law, pension or insurance scheme.

The Decree-Law mentions that retirees are not allowed to receive more than one pension under different retirement and insurance systems, except for those entitled to pensions because of disability, work accidents or kinship.

The pensioners who are entitled to any of the previous laws and get jobs that are not subject to the same law in which they are entitled to the pension may combine their previous service period with their new service period, according to the rules stipulated in the retirement and insurance laws and regulations.

They may also choose to continue receiving their pensions for their previous work period, in addition to the salaries they earn from their new jobs provided that they are not subject to retirement laws and insurance against work accidents.

Employers who fail to pay the insurance contributions stipulated by the Social Insurance Law promulgated by Decree-Law 24/ 1976 shall have to pay a fine not less than the total value of the unpaid contributions and not exceeding three times its value.

The value of the fines shall be referred to the Pension and Social Insurance Fund.

There have been calls from many quarters to include expatriates as well in the pension scheme.

The SIO earlier said that the government is considering a move to incorporate expatriates working in the public and private sectors within the pension fund.