GOVERNMENT and private sector pensioners could soon be given a choice in how their end-of-service bonus is calculated.
They will be able to choose between a one-off 10pc increase to their monthly pensions, or a lump-sum bonus calculated at three per cent of their average salary, multiplied by their months of service.
Either way, they would still get their normal monthly pension payments, plus the statutory annual three pc increase.
Parliament yesterday approved the measures in a government-drafted bill, based on a Shura Council proposal.
The Pension Fund Authority (PFA) said yesterday that it was backing the bill, saying that it would ensure fairness for pensioners, regardless of their place of work.
The PFA has also agreed to give the choice to beneficiaries, who would inherit the pension if the breadwinner dies.
But recipients must submit their choice to the PFA before their first monthly pension payment is made.
At the moment, private sector pensioners receive the 10pc increase, while government sector pensioners receive the cash payment.
However, those who are forced to leave work due to permanent injury would only get the 10pc increase.
To give them the lump sum would deplete PFA funds, since the recipients would not have completed the required years of service, says the bill.
It will now be studied by the Shura Council and if approved would go for ratification by His Majesty King Hamad.
Meanwhile, MPs yesterday backed for the second time their own bill, which would grant civil servants automatic promotion, by one step, each year.
They would also move up two steps after every five years of service, provided the promotions did not take them above their ranking band.
There are several steps within each civil service grade.
The bill will now go back to the Shura Council, which has already rejected it once.
If it rejects it for a second time, it must be referred to a full National Assembly meeting at which members of both chambers would vote.
This has not yet happened in the sever-year history of the National Assembly, despite several stalemates between the two chambers.
alaali@gdn.com.bh
