CAIRO: The Minister of Finance Yousef Botrus Ghali said on Sunday that a ministerial committee has prepared a new bill on pensions, which is currently being reviewed by concerned government agencies.
“The new bill will create a high commission for pensions with representatives from the Ministry of Finance, the Ministry of Investment, the Ministry of Social Solidarity, the Ministry of Manpower, and officials from the Capital Market Authority and the Egyptian Insurance Supervisory Authority, Ghali added. “This commission will supervise regulations and performance of pension’s authorities independently from the Ministry of Finance.
He pointed out that the new system on pensions will stand on specific criteria that insure adequate pension, stable financial sources, sound management performance, efficient and transparent investment of pension funds, and development-oriented pension management that takes into account distortions in the labor market.
The bill will keep intact the present pension system, but will create a parallel system for new subscribers, who will pay 17 percent of their monthly salaries in subscriptions. The minister of finance explained that 12 percent of subscribers’ salaries will be deposited in non-tradable treasury bonds, and 5 percent of salaries will be invested in financial assets.
The bill will provide relatively lower pensions for every citizen aged 65 and above through the Social Solidarity Scheme. Additionally, temporary workers will be allowed to subscribe in the pension funds under the new bill’s regulations.
