THE government's pension fund could benefit from high oil prices if a proposed bill is passed.
Shura Council member Bassam Albinmohammed submitted the proposal yesterday, which was referred to the financial and economic affairs committee for study.
He said the draft bill was essential because studies showed that the fund could suffer shortages in the future.
'Studies presented by the Pension Fund Authority show that pension funds would face deficiencies in future with contributions not matching spending and ongoing commitments,' said Mr Albinmohammed, who is also youth committee vice-chairman.
'There are also numerous demands from the public to have increased pensions and early retirement for women.
'The current situation is complicated and with those two factors taken into account financial problems are expected to deepen in the future.'
He explained that the proposed bill would take up to $2 a barrel from the oil revenue to support the fund.
'If oil prices are between $40 and $80 then the cut is $1 per barrel, but if it is above $80 then the cut is $2,' he said.
'That revenue could be given to Osool Company, which is responsible for pension funds investments, which would help it garner profit as it pumps it into the local market.'