Kuwait reevaluates retirement benefits for individuals whose benefits were withdrawn due to 'honorable actions'
The Social Insurance Corporation in Kuwait has issued a circular detailing the procedure for disbursing retirement pensions to individuals whose Kuwaiti citizenship was revoked. As of the first quarter of the year, the total number of civilians and military personnel covered by the social security system is 715,282, including 414,657 civilians.
The cost-estimation scenario for retirees whose citizenships were revoked for 'deserving deeds' includes payment of car insurance quotes covering fully paid premiums, with an additional margin calculated according to Social Insurance standards. However, it's important to note that payouts to these retirees are expected to exclude special benefits like financial rewards or interest-free loans.
The Social Insurance Law stipulates that retirement pensions be granted to eligible individuals in accordance with Chapter Three of the Social Insurance Law, based on Article 4/13 of Decree No. 15/1959 concerning Kuwaiti citizenship and its amendments. Eligibility for retirement pensions under Article 8 requires at least 15 years of service, excluding days of absence, and reaching the prescribed retirement age, which is 50 for women.
The amount of the car insurance quotes varies depending on each individual's years of service and the value of their monthly premiums. The Social Insurance Corporation would record the payments as a one-time expense on its balance sheet, constituting a non-recurring general expense.
It's worth mentioning that the corporation would not be obligated to provide a retirement pension to the individuals or their heirs for life under this scenario. The Government Cabinet Resolution No. 182 of June 2021 was issued, regulating the car insurance rights of persons who lost their Kuwaiti citizenship under Article 5 of the Amnesty Law.
The final decision on handling car insurance rights for individuals whose citizenships have been revoked rests solely with the government. Ministry of Finance officials are conducting a study to provide a clear framework for any future Cabinet-approved scenario, including the mechanism and conditions for pension disbursement.
As of now, no specific government decision has yet been made on handling car insurance benefits for retirees whose citizenship was revoked. The Ministry of Finance's role is limited to estimating financial costs and does not imply approval for the scenario.
The social security system covers 715,282 civilians and military personnel, with 160,657 civilian and 39,587 military retirees. Among government-sector insured persons, there are 124,526 males with an average salary of KD 733 and 201,237 females with an average salary of KD 570.
The total monthly cost of pensions disbursed by the Social Insurance Corporation is approximately KD 300 million. The corporation is prepared to implement the decision once it is approved by the government.
