Lifesaving fund for retirees ‘in sight'
Parliament is expected to vote on a proposal to draw from a BD463 million surplus in the Unemployment Insurance Account to cover yearly increases in pensions. The aim is to ease the pressure on the main retirement funds, which remain under financial strain.
The proposal has been submitted by five MPs: Khalid Buanaq, Dr Ali Al Nuaimi, Ahmed Qarata, Zainab AbdulAmeer and Eman Showaiter. Clause It seeks to add a new clause to the 2006 law on unemployment insurance, allowing the surplus to be used for pension increases granted under any retirement or insurance scheme. This arrangement would continue until both the Pension and Social Insurance Fund and the Military Pension Fund are able to cover the increases on their own.
The Services Committee has backed the move after reviewing the wording and reasoning behind it. Purpose Members present agreed that the surplus, which has been building up over recent years, could be used for this purpose. As of the end of December 2023, the Unemployment Insurance Account held BD463.2 million in net assets. The amount reflects the difference between income and outgoings, with BD54.4 million left over in 2023 and BD51.3 million in 2022.
By law, any excess confirmed by an actuary must be moved to the account's reserve. Decision That money may only be spent following a Cabinet decision, with the minister's recommendation and approval from the board. Previous withdrawals have gone towards pandemic-related wage support and one-off job schemes. This proposed clause would allow the fund to cover yearly pension increases on a temporary basis. The wording makes clear it is a stopgap.
Cost Once the pension funds have enough to meet the cost themselves, the use of the unemployment account would end. The proposal does not alter existing rules but adds another permitted use of the surplus. It would be the eighth item listed under paragraph (c) of Article 8 in the same law. Parliament's Legal Affairs Committee found no constitutional issue with the draft.
Coordination The Military Pension Fund said coordination with the Cabinet would be required and its position would be included in the government's formal reply. In their explanatory note, the MPs said the aim is to protect retirees from the effects of rising prices.
They cited Article 5 of the Constitution, which states that the State must provide social protection for those unable to work, including the elderly and unemployed. Audited report They also referred to an audited report presented to Parliament. It confirmed that the unemployment account has built up a financial cushion beyond what is needed for its current remit. They argued that using these funds to cover pension increases serves the wider public interest and fits within the intent of the law.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Insider
2 days ago
- Gulf Insider
Saudi Arabia Returns To Two-Term Academic Year Starting 2025-2026
The Saudi Cabinet has approved a return to a two-semester academic year for public schools starting in the 2025–2026 school year, while maintaining the previously approved long-term academic calendar framework through the next four years, the Ministry of Education announced. The ministry said the decision follows a comprehensive review of the three-semester model, which had been adopted as part of broader education reforms in line with Vision 2030. While the three-term system helped solidify a minimum of 180 instructional days annually — comparable to averages in OECD and G20 countries — the shift back to two terms reflects a strategic pivot informed by national consultations. The ministry emphasized that educational quality is not solely determined by the number of semesters but by the foundational elements of the learning ecosystem, including teacher training and motivation, curriculum development, school environment, institutional governance, and local autonomy. A wide-ranging study involving educators, administrators, students, and parents found that flexibility in academic scheduling — particularly in regions with special seasonal demands like Makkah, Madinah, Jeddah, and Taif — is essential for better alignment with local needs and to support national priorities such as the Hajj and Umrah seasons. While public schools will return to a two-term system, the Ministry confirmed that private and international schools, universities, and vocational institutions will retain the flexibility to choose the academic model that best suits their needs.
Daily Tribune
2 days ago
- Daily Tribune
MP calls for return of traditional Mukhtar system to settle local disputes
Reviving Bahrain's traditional Mukhtar system (local community mediator) would ease the strain on the justice system by sorting out minor disputes informally, MP Jalal Kadhem has said. Kadhem urged the government to reintroduce the Mukhtars legally under the Governorates Law, suggesting the system could reduce caseloads on the courts by settling disagreements amicably within neighbourhoods. 'Many cases reaching official channels today are quite minor and could be handled perfectly well by a Mukhtar,' he said. 'It saves official resources and builds trust in community-driven solutions.' The Mukhtar once played a strong role in Bahraini neighbourhoods, mediating in disputes, assisting locals with paperwork, and acting as a link to government bodies. Problems Kadhem said the return of Mukhtars would help communities identify problems early and deal with them quietly. 'Historically, the Mukhtar system succeeded in keeping communities together,' he said. 'Restoring it would mend family divisions and restore traditional social bonds.' He noted the Cabinet had previously backed the system in 2011 as a way to support local governors and maintain public order. Social shift According to Kadhem, current social shifts and rising family disputes mean that reviving it has become urgent. 'The Mukhtar helps maintain Bahraini customs and traditions,' he said. 'They can defuse family disagreements and calm tensions without involving the courts.' Kadhem also criticised reliance on social media to air family grievances, suggesting it usually inflames tensions rather than resolving them. 'Social media thrives on controversy, not calm,' he warned. 'Problems are best handled discreetly by trusted community figures.' Kadhem concluded by saying the reintroduction of Mukhtars across Bahrain's villages and towns matched the leadership's vision of community collaboration and would prevent minor issues from growing into serious crises.
Daily Tribune
29-07-2025
- Daily Tribune
Cabinet Reaffirms Bahrain's Steadfast Support for Peace in Gaza
TDT | Manama Under the leadership of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, Bahrain continues to strengthen its internal development agenda while deepening international partnerships. Chairing the weekly Cabinet meeting at Gudaibiya Palace, HRH highlighted progress across youth empowerment, foreign diplomacy, and legislative reform. A key moment of the session was the Cabinet's celebration of City of Youth 2030, following His Majesty King Hamad bin Isa Al Khalifa's visit. The initiative reflects the Kingdom's strategic focus on investing in youth potential, seen as a vital pillar of national progress. Cabinet members praised the visionary support of His Highness Shaikh Nasser bin Hamad Al Khalifa and His Highness Shaikh Khalid bin Hamad Al Khalifa for elevating youth and sports programs. On the diplomatic front, the Cabinet reviewed the outcomes of high-level engagements that are boosting Bahrain's international profile. This included His Majesty the King's recent talks with Lebanese President Joseph Aoun, reaffirming historic ties, and his successful visit to Italy, where he discussed strategic cooperation with Prime Minister Giorgia Meloni. In a milestone for economic diplomacy, the Cabinet highlighted the Crown Prince's recent visit to the United States, marked by a historic $17 billion investment package. The agreements reached are expected to unlock long-term growth and reinforce Bahrain's role as a trusted partner in global trade and security. Marking World Day Against Trafficking in Persons, the Cabinet renewed its commitment to combating human trafficking. It commended the Ministry of Interior and partner agencies for their tireless efforts and urged continued vigilance. Bahrain's humanitarian commitment also remained in focus, with the Cabinet calling for sustained aid to Gaza and reaffirming the Kingdom's support for a peaceful resolution to the Palestinian issue, including the protection of civilians and an end to violence. The Cabinet approved several memorandums, including agreements with Tunisia, Turkmenistan, the United States, and local institutions, touching on digital governance, environmental cooperation, security, and educational reform. It also reviewed the fruitful legislative work from the previous parliamentary session and upcoming regional ministerial visits.
