The Minister of Finance Fahd Al-Jarallah has recently issued Resolution No. (6) of 2023, which introduces important changes to the minimum retirement pension. In this blog post, we will break down the key points of the resolution and explain how it may impact retirees in the country.
Minimum Pension for Those Supporting Children
Under the new resolution, the minimum pension for individuals supporting seven or more children is set at 1,615 dinars per month. For those with fewer than seven children, the minimum retirement pension will be determined based on other criteria.
Dependency Requirements for Children
In order to establish dependency for children, their age must not exceed twenty-four. However, there is an exception for sons who are unable to earn a living. For daughters, they must be unmarried, and if divorced, the divorce must be irrevocable to prove dependency. It’s important to note that support is not provided for children who are employed, entitled to a retirement pension, or receiving any other form of public assistance.
Minimum Pension for Dependent Children
The minimum retirement pension for dependent children applies to pensioners in specific circumstances. This includes cases where the father has passed away, is unable to work or earn, and does not receive any regular salary, pension, or public assistance. Additionally, if a mother supports her children without receiving alimony from those she is obligated to support, she may also be eligible for the minimum pension. The amount of the pension will be determined based on the Civil Service Law.
Consideration of Total Pensions and Increases
When determining the amount of increase to the minimum retirement pension, the total amount of retirement pension, supplementary pension, and any other pensions, shares, or increases due will be taken into account. This includes increases according to the provisions of relevant laws such as Law No. (61) of 1976, Law No. (69) of 1980, or Law No. (25) of 2001. If the pension has previously been raised to the minimum, the amount of the increase is excluded, and the pensions, shares, or increases that are due are added. If the total falls below the prescribed minimum, it will be raised accordingly.
Adjustments for Changes in the Number of Dependent Children
If the number of dependent children increases, the amount of the increase to the minimum retirement pension will also increase, starting from the month following the change. However, a decrease in the number of dependent children will not result in any change to the amount of the raise to the minimum.
Impact on Pension Replacement
It’s important to note that raising the retirement pension to the minimum does not increase the portion that the pensioner may replace.
Transition for Existing Pensioners
Pensioners who currently benefit from the provisions of Resolution No. (2) of 2003 will be transferred to the category corresponding to their dependency status. This will be based on the criteria that entitled them to the minimum retirement pension under Article (2) of the new resolution. However, if they are entitled to a category higher than the new minimum due to an increase in the number of dependent children, they will retain their current category.
Effective Date and Implementation
Resolution No. (6) of 2023 will be effective as of December 3, 2023. The Director General of the Corporation will take the necessary measures to implement the resolution, and it will be presented to the Board of Directors of the General Corporation for Social Insurance at its first meeting.
It is important for retirees and pensioners to familiarize themselves with these changes and understand how they may be affected. For more information and specific details regarding individual cases, it is recommended to consult with the relevant authorities or seek professional advice.
Disclaimer: This blog post is for informational purposes only and should not be considered as legal or financial advice.
Source: TimesKuwait
