His Majesty King Hamad yesterday issued a decree-law merging the government employees’ pension fund and the social insurance fund.
The Social Insurance Organisation (SIO) will manage the new-look entity which will be known as Pension and Social Insurance Fund (PSIF).
The PSIF resources consist of all contributions, amounts, fees and benefits that are paid to the government employees’ pensions fund.
The returns of the PSIF investments and proceeds generated by other activities will also be injected into the newly-established fund.
Under the decree-law, the annual increase shall be suspended on all pensions prescribed under any law, pension or insurance scheme.
If the actuary report shows that there is a surplus in the pension and social insurance fund or the pensions fund of Bahraini and non-Bahraini BDF and Public Security officers and affiliates, then the excess (surplus) will be deposited in a separate account in each of the two funds.
It is not permissible to dispose of the earmarked surplus unless approved by the Supreme Council for Military Pension or SIO board – as the case may be.
Any rise in pensions shall not exceed the rate of increase in the general index of consumer prices, taking into account recipients of low pensions.
It is also no longer permissible to combine a retirement pension with a salary, wage or monthly bonus, except pensions due to disability, work injury, or because of kinship.
His Majesty issued another decree-law amending provisions promulgating the Reorganisation and Bankruptcy Law.
The Prime Minister and the ministers – each within their jurisdiction – shall enforce the provisions of this law which shall become effective the day following its publication in the Official Gazette.
He also issued a decree-law amending the law on social and cultural societies and clubs and private entities working in the sectors of youth and sports.
The amended law authorises the establishments of clubs as trading companies in compliance with the law on commercial firms. Clubs may change their legal entity to commercial companies in accordance with the rules and procedures determined by a decision of the competent minister pending Cabinet approval.
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