Kuwait evaluates retirement benefits for individuals who had their benefits withdrawn due to 'admirable acts'
In a significant development, the Kuwaiti government is reviewing the case of retirees whose citizenship was revoked, to determine whether they can retain their social security rights. This decision, if approved, would allow these individuals to receive their retirement pensions, despite the loss of their citizenship.
According to a report from the Ministry of Finance, the review is focused on estimating the financial costs associated with this decision. The cost-estimation scenario involves paying insurance amounts that cover fully paid premiums, with an additional margin according to Social Security standards.
The Social Security Law restricts retirement pensions to Kuwaiti employees and certain legally specified individuals. However, a government cabinet decision has already adopted a stance that allows Kuwaiti retirees, whose nationality was revoked due to 'outstanding deeds,' to retain their social security rights.
The Social Security circular specifies that eligibility requires at least 15 years of service, excluding days of absence, and reaching the prescribed retirement age, which is 50 for women. Under this scenario, the Social Security Corporation would record the payments as a one-time expense on its balance sheet, constituting a non-recurring general expense.
It is important to note that any payouts are expected to exclude special benefits granted to regular retirees, such as financial rewards or interest-free loans paid in installments. The ministry's role in these scenarios is limited to estimating financial costs and does not imply approval.
The resolution addressing the social security rights of those whose citizenship was revoked is based on Article 4/13 of Decree No. 15/1959 concerning Kuwaiti citizenship and its amendments, and stipulates that retirement pensions be granted to eligible individuals in accordance with Chapter Three of the Social Security Law.
The study by Ministry of Finance officials aims to provide a clear framework for any scenario approved by the Cabinet in the future, including the mechanism and conditions for pension disbursement. No specific government decision has yet been made on handling social security benefits for retirees whose citizenship was revoked.
As of the latest report, the social security system covers 715,282 civilians and military personnel. This includes 414,657 civilians, 160,657 civilian retirees, 39,587 military retirees, and 124,526 government-sector insured males averaging KD 733, and 201,237 government-sector insured females averaging KD 570. The total monthly cost of pensions disbursed by the Social Security Corporation is estimated at approximately KD 300 million.
The ministry's officials are considering a scenario in which retirees whose citizenship was revoked for 'excellent deeds' receive pensions using the same mechanism under Article 8, with criteria including years of service, retirement age, basic salary, and premiums paid. The amount of the social security bonus varies depending on each individual's years of service and the value of their monthly premiums.
The Social Security issued a circular last August detailing the procedure for notifying end of service and the documents required to disburse retirement pensions to individuals whose Kuwaiti citizenship was revoked under Article 8. The final decision on handling social security rights for individuals whose citizenships have been revoked rests solely with the government.
Stay tuned for further updates on this developing story.
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