Page 328 - Bahrain Gov annual reports(V)_Neat

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GOVERNMENT PENSION SCHEME
The Government Pension Scheme came into force at the beginning of 1955. Like every
other Scheme which has been introduced by the Government for the benefit of its employees,
the Pension Scheme was regarded with suspicion and even aversion by the people who were to
benefit by it. After innumerable meetings, discussions and written explanations, however, the
scheme was eventually successfully launched.

It applied to all locally enlisted monthly paid employees with not less than one year’s service
between the ages of 25 and 50, in the case of the police and women teachers between 25 and 45.
The retirement age for men was set at 55 and for police and women teachers at 50. Persons
not eligible to participate in the Pension Scheme continued to enjoy the benefits of the Provident
Fund.
In the case of a male member, other than a policeman, the annual rate of pension on
retirement was calculated by multiplying 1/60 if male or 1/80 if female, of the basic salary at the
1st of January five years before normal retirement date, by the number of complete years from
the date of entry into the scheme to the date of normal retirement, e.g. :
An employee entering the Pension Scheme on 1st January, 1955, aged 25, with a salary of
Rs. 1,000, at the age of 50 would retire on 30/60ths, i.e., half, of Rs. 1,000, that is Rs. 500/- per
month at the age of 55 in 1985, the pension being paid monthly throughout the life of the
member. Should he die within five years of his retirement his estate would receive a sum equal
to five years payments less the amount paid to him prior to his death.
The scheme provided a part payment in cash, on retirement not exceeding one-half of the
total annual payment in the case of a member who joined on 1st January, 1955, or one quarter
in the case of a member joining later. A special arrangement was made to benefit employees
with long service, those who were in the service of the Government before 1942 were entitled
to an additional pension calculated by multiplying 1/120th of Scheme Salary current on 1st
January nearest to the employee’s 50th birthday by the number of completed years of service
between January 1st, 1928 and 31st December, 1942.
The estates of employees dying while in service would receive a cash payment equal to two
years basic salary and the return of all the employee’s contributions.

Members of the Scheme contributed 1 Anna in the rupee (6\%) of their current salary ;
the Government contributed the balance of the total cost.
In addition to the Pension Scheme the Government has had in force for some years a Sick
Benefit Scheme which provides for, among other benefits, a gratuity of one month’s pay for
each year of service, with a maximum of 12 months, for employees who are permanently and
totally disabled.
These benefits now ensure a generous provision for Government employees on their
retirement or on their being compelled to leave the service for health reasons.
The pension scheme for European Officials, on the same lines as that for non-Europeans,
was still under discussion at the end of the year, certain differences in the two schemes are
unavoidable due to various factors, one being that foreign employees would obviously retire
to Europe on leaving the service of the State.