JEDDAH: The Shoura Council’s finance committee has proposed that the retirement age be increased to 62, and for employers to raise their contributions to civilians by 5 percent and members of the military by 7 percent.

The Shoura has kept intact several sections of the Civil Service Retirement Law, and proposed amendments to others. It said that the retirement age must be raised because medical science was giving people the ability to work up to 62, according to a report in a local publication on Thursday.

The committee, in its report that will be discussed by the Shoura next week, also proposed that the Finance Ministry increase its support to the Public Pension Agency from 9 percent to 12 percent, which would assist in increasing the share paid to state workers.

The committee included an article that ensures civilian and military personnel should receive retirement benefits after 25 years of service, and can request retirement and the receipt of a pension after service of not less than 20 years.

The committee’s report on Article 21 stated that all beneficiaries must get equal payout if a pensioner dies, with full payment to three or more beneficiaries, three-fourths if there are only two beneficiaries, and half if there is only one beneficiary.

Furthermore, the Public Pension Agency revealed in its annual report that it had conducted an actuarial study of the pension system, and recommended urgent solutions to the financial state of the body in terms of subscriptions and benefits.

The committee said that early retirement was one of the main reasons for the pension agency having a deficit.