NAO: Actuarial Deficit of Retirement Fund Increased to 10.6 Billion BD at End of Last Year
2017-12-07 - 11:59 p
Bahrain Mirror: The National Audit Office report for the years 2016-2017 revealed that the actuarial deficit of the public and private retirement funds reached 1.06 billion BD at the end of 2016 after it was 6.3 billion BD at the end of 2012, i.e. a 73% increase.
The report said that the public retirement fund entered the second stage of actuarial deficit, after it had entered the first stage years ago.
The report also read that the first stage starts when the cost of insurance benefits exceeds income contribution. The real deficit increased from 24 million BD in 2012 to 129 million BD in 2016, i.e. the deficit increased by more than 5 times.
It further stated that the second stage of the actuarial deficit starts when the total of expenses exceeds the total revenues.
As for the private retirement fund, the report highlighted that it entered the second stage of actuarial deficit in 2016 with a 2 billion BD deficit. The Fund had 81 million BD surplus.
As for the MPs, Shura members and municipal councils fund, the deficit increased by 5 times; it was 316000 BD and increased to 1.5 million BD last year.
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