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Tuesday , September 21 2021

Selfish ‘foreign’ retirees

Two days ago, I wrote about a proposal for retirees to share part of the Public Institution for Social Security’s (PIFSS) profits. As I expected, those opportunists who disagree with me and do not care about the future of the country or the welfare of its citizens attacked me personally and incited the adults against me, as if I were a direct beneficiary of depriving retirees of the profits of their institution.

My view is clear: It is not permissible by law, norm, nor by accounting at all, for the retirees to share in any part of the institution’s profits, since this money belongs to the retirees, the government employees and private companies, and withdrawing any money from the institution’s reserves constitutes direct damage to the participants in the insurance including our children and makes the distribution of part of the profits to retirees improper, other than its illegality.

The (PIFSS) complains of a huge actuarial deficit, and the government is obliged to cover it from public money, and this is what happens. The general budget includes annual subsidies for the benefit of the institution, in addition to the government’s share of the contributions of its civil and military employees.

The announced deficit amounted to 17 billion dinars, or 66 billion dollars, or about 11% of the total value of the future generations’ reserve fund according to the financial statements issued by PIFSS for fiscal 2018/2019 that were submitted to the National Assembly, and the deficit may have increased recently with the increase in the number of retirees.

The biggest challenge facing PIFSS is not only limited to this large amount of the actuarial deficit, but also its frightening acceleration, and this is what prompted experts to warn of its aggravation. Al-Shall report indicated that if the deficit continues to increase at this pace in the coming years, it will exceed 33 billion dinars.

The number of retirees (citizens) is approximately 140,000, while the number of workers in the government and the private sector is 450,000. What is more dangerous is that 440,000 may enter the labor market in the next 15 years, so how can part of the institution’s profits be spent, in an already illegal way, for 140,000 citizens and waste the rights of nearly a million others in the future?

There is no doubt about the integrity and sincerity of those who supported the proposal for the share of retirees in the profits of the PIFSS but we must know that the integrity of the social security system depends on careful consideration of the impact of every policy or financial decision that can affect the balance of financial inflows and outflows in the present and in the future.

As a retiree, I will definitely benefit from the amount that will be distributed from the profits of the institution, and this is what I do not want, and I am afraid of its consequences, and it is therefore wise not to listen to the requests of some retirees who spend their time and live in Spain and Thailand, who are not concerned about the interests of the country as much as their selfish and immediate interests.

e-mail: a.alsarraf@alqabas.com.kw

By Ahmad alsarraf

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