To my retired colleagues... “Do not rejoice too much...!”

Frankly, I do not know whether to congratulate the retirees with this grant of 3000 dinars and the few extra dinars each year, or to tell them hard luck" because neither the council nor the government gave you anything as a grant, but rather your financial situation will worsen. Let us summarize how this matter began. In fact, a group of leaders of the Public Institution for Social Security were heartened by the institution’s performance for the exceptional year 2021, so they gave their opinion without taking into account the risks of incomplete statements, as these profits are mostly the result of the profits of rising markets. It is book profits that rise and fall with the performance of the markets, and its real profits are nothing, but the cash profits distributed by those shares and real estate. As for market profits or losses, they are not actually achieved except upon liquidation and disassociation. Of course, this applies to the company's accounting system, but the insurance institution's accounting system has another element. These invested funds belong to retirees and to participants who are still actively working, and there is an actuarial account that regulates the cash flows that ensure the sustainability of the institution. Those who reviewed their performance had to be careful and transparent in their presentation. I wish they would present their opinions now and tell us how their portfolios performed in the second quarter of this year. It is desirable if they provide us with their book numbers, as all the portfolios in the world will suffer and will suffer for the next three years from losses or modest profits due to the high inflation figures in the world and the wave of rising interest rates, and on top of that, the Russian-Ukrainian war. I had hoped the leaders of the Public Institution for Social Security would enlighten the board members about their financial position this year and the long-term investment mechanism followed by them prior to approving the amendment to the institution’s law, and the most important thing about it is the state’s payment of 500 million dinars annually in cash and in kind. Let us stop at "in kind." Does this mean that the state grants real estate that has market value to be owned by the Public Institution for Social Security for the purpose of investing in it? What is the mechanism for transferring that real estate? Is it usufruct like Shuwaikh or would it be a private property? What is the impact of a huge institution entering the Kuwaiti real estate market with major projects? What is its impact on supply, demand and competition between citizens and the private sector? Or is it an investment restricted to strategic projects, such as developing islands and beaches, the Silk City, or recreational projects that the country needs and that are an important and complementary financial source to the country's needs? Several questions that I do think our friends in parliament and the government didn't pay attention to, and there is another question that crosses my mind. If someone files a lawsuit and challenges the constitutionality of this law, and he wins the case and nullifies the law, do citizens legally have to return the amount of the grant? If it does, how will it be dealt with? Because annulment is possible, and really, there is no justice. Yesterday, we were four at dinner and of a close age group. One has been retired for more than twenty years, since retirement was completed at the age of forty-five, and he has received a pension since that time. The second was retired five years ago. The third just retired a week ago. The fourth is still working and paying. By analogy, the first and second paid less and received more, the third paid more and did not receive anything, and the fourth was still paying and did not receive any money. Well, how do we distribute the grant equally among these four? What will the payment be for those who will retire next week? Personally, I abhor the method of enacting laws without a detailed study of all its dimensions and taking them out as a result of a political or utilitarian conflict. I say to our parliament members who are in their homes, and to those who are protesting and sleeping in their offices, and to our resigned government, God forgive you. You all did not do what is in the interest of this country and its future. As for my retired colleagues, I say, you see, do not rejoice too much. This amount will evaporate within three days and turn into merchants’ accounts, which will increase inflation and prices. I wished that this grant would be away from the public institution for Social Security accounts and be paid as well as the one paid to the front-line teams during the Corona pandemic. I also wished it would favor low-income retirees rather than wealthy retirees. I wished that the minimum retirement salary would be raised and that the annual increase should be linked to the inflation rate and not be a fixed amount. Only in this way can the purchasing power of pensioners' money be preserved. May God protect this country and protect it from the tampering of some of its citizens.

Stay safe.

@AdnanAlothman