KUWAIT CITY, Nov 25: Officials at the Public Institution for Social Security (PIFSS) are exploring the legal and procedural mechanisms for disbursing contributions paid by individuals registered in the social security system who had their Kuwaiti citizenship revoked before retirement, up until the time they stopped making contributions. This follows directives issued by the Cabinet to the institution regarding the pensions of retirees whose citizenship was revoked before reaching retirement age. According to informed sources, PIFSS is not deciding on the disbursement mechanism for these entitlements, as approval for individuals in this category falls under the authority of the Cabinet.

The process involves the institution either paying the contributions made by the individual or providing a suitable bonus, whichever amount is higher. In both cases, a precise insurance calculation is used to determine the financial entitlements that PIFSS must pay to the beneficiaries of this procedure. Accordingly, any individual registered with the Social Security System whose Kuwaiti citizenship was revoked before retirement will not receive the same benefits as a retired citizen under Kuwaiti Social Security Law No. 61/1976 and its amendments, particularly the continuous pension, even if the employee’s retirement occurs one day after the citizenship revocation decree. Based on the fair value of the registered individual’s contributions and their due gratuity, PIFSS will pay whichever amount is higher.

The sources confirmed that the government’s directive to PIFSS is aimed at ensuring the highest degree of financial fairness for registered individuals whose citizenship was revoked before retirement. They indicated that PIFSS officials are assessing the impact of paying the dues of subscribers whose citizenship was revoked on cash flow, as well as the institution’s operational and financial capacity to pay pensions. Based on the results of this assessment, the appropriate payment mechanism will be determined, whether in a single payment, two installments, or more, along with a defined time frame between each payment. The sources stressed that the opinion of the Fatwa and Legislation Department was sought to interpret the Cabinet’s directive on this matter, as this procedure is being implemented for the first time in Kuwait.