Bahrain set to vote on pension law amendments under Islamic Banking rules

Laws would allow workers to replace their pension benefits with cash under Islamic banking rules

  
Photo used for illustrative purpose. Members of parliament are seen during a closed door session during weekly parliament session in Manama.

Photo used for illustrative purpose. Members of parliament are seen during a closed door session during weekly parliament session in Manama.

REUTERS/Hamad I Mohammed

Bahrain MPs are set to vote on three amendments to the existing pension laws that would allow workers to replace their pension benefits with cash under Islamic banking rules.

The government has asked MPs to rethink the amendments with the system being voluntary, while stating that it is not a loan.

The laws are: The 1976 Bahrain Defence Force and Public Security Wages and Pensions Organisation Law, the 1976 Social Insurance Law and the 1975 Government Employees Wages and Pensions Organisation Law.

“There is a difference between loans and advance cash benefits, which is the case with the voluntary option we have, and wouldn’t change, but a parallel option is being studied by the Social Insurance Organisation and the Military Pension Fund with local Islamic banks,” said the government in writing.

MPs will also vote to establish a new park in Hamad Town, which is suggested to be named as Salman Bin Hamad, opposite Bahrain University’s Sakhir campus on the open ground that is regularly flooded whenever it rains.

They will also vote to force the Youth and Sports Ministry to pay outstanding allowances and bonuses to players and coaches in national clubs.

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