Parliament rejects move to reinstate pensions for MPs: Bahrain

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A MOVE to reinstate lifetime pensions for elected and appointed public representatives has been shot down.

Of the 31 MPs present in Parliament during its weekly session yesterday, 26 voted against reinstating the 2009 MPs, Shura Council and Municipal Council Members’ Pension Law, four abstained and only Jalal Khadim endorsed the proposal.

Under the rejected legislation, public representatives would have be entitled to annual increases in pensions similar to others in the private, government and military sectors.

The legislation also sought to remove the BD4,000 monthly cap on the pensions.

A bill that overhauled pension packages, with trimmed benefits for elected and appointed officials, was approved in October 2018 by the then Parliament and Shura Council.

Prior to that, representatives qualified for a lifetime pension equal to 50 per cent of their monthly wage after serving a four-year term, 80pc after serving two terms and 90pc for three or more terms – in addition to a regular state pension.

Bonus

Now, they qualify for a one-month bonus for each year of service during the four-year term.

The 2018 rules for public office positions do not apply to those who held such roles before the measure was adopted – meaning only those coming to office from 2018 have been affected.

As a result, long-serving representatives elected before and after the rule fall in both the categories as they continue to receive pensions, along with bonuses.

Under a decree issued by His Majesty King Hamad last year, public representatives who lose their seats are allowed back to their original workplaces in the same, or higher, positions.

Maryam Al Sayegh stirred a controversy on social media with her comments on reinstating the pension law.

“MPs don’t want to reinstate pensions. I am not against that, but we shouldn’t leave a party without at least a food parcel,” she said.

“Don’t give lifetime pensions but at least calculate the four years as an extension to existing periods with the Social Insurance Organisation or open the door for voluntary pension contributions as a continuation to their pension years,” she added.

“It is unrealistic that MPs who don’t want to go back to their jobs should be left without a source of income.”

Mr Kadhim said the current system was unfair.

“Former MPs continue to use special passports until it expires, but that’s a joke considering they have no source of income nor can they cope with living expenses.

“Coming to this place should be an honour and not a punishment.”

Second deputy speaker Ahmed Qarata said a solution needs to be found for young MPs who are not eligible for pensions due to necessary years not being completed.

“A balanced system needs to be introduced,” he said.

“Some don’t want to go back to their original work in a similar post knowing that if had they continued in the job they would have been promoted to a higher post.”

Parliament public utilities and environment affairs committee chairman Hisham Al Awadhi said MPs were wasting time discussing their own interests rather than public welfare.

“We have moved on from this nonsense topic since 2018,” he said.

“We are here to serve the people.”

In April this year, Shura Council members unanimously rejected the bid to reinstate the 2009 MPs, Municipal Councillors, Shura Council and Capital Trustees Board members’ Pay and Pension Law, presented by former MPs who served from 2014-2018.

Parliament’s services committee had also recommended that their colleagues reject the proposal.

The Cabinet had warned that reinstating the law would mean the government would have to pump in huge amounts of money to make up the difference in the Social Insurance Organisation (SIO) at a time it was trying to trim the deficit.

The SIO had also warned of long-term damage to its coffers if the move was given the go-ahead.

Beneficiaries

Parliament’s legislative and legal affairs committee voiced similar concerns, acknowledging that only a few remain as beneficiaries since 2002, which they believe was manageable.

An ‘end-of-service’ bonus for former public representatives was transferred to their bank accounts in August last year.

The monthly wages adding up to BD4,250 for regular MPs and Shura Council members include BD2,000 basic salary, BD1,200 representational allowance, BD300 social allowance and BD750 for car instalment.

The first and second vice-chairmen in each chamber receive BD500 more, while Parliament Speaker and the Shura Council Chairman receive BD1,000 extra.

The bonus includes all allowances except for the car instalment.

It means that MPs and Shura Council members received BD14,000 (BD3,500 per month) as a one-time bonus. First and second vice-chairmen received BD16,000 (BD4,000 per month), and BD18,000 (BD4,500 per month) for both Parliament Speaker and the Shura Council Chairman.

Municipal councillors and Capital Trustees Board members earn BD1,500 a month without any allowances. Vice-chairmen receive BD1,800 without any allowances while chairmen take home BD2,000 with a BD300 car allowance.

It meant that members received BD6,000 as bonus, vice-chairmen BD7,200 and chairmen BD8,000, excluding the car allowance.

The payouts cost the government around BD1.130 million.