‘Engineers’ syndicate accepts first change to fund subscription in 43 years’

AMMAN — The Jordan Engineers Association (JEA) general assembly on Saturday rejected its council’s recommendation to increase pension premiums, according to an informed source. 

During an extraordinary meeting, attended by 2,363 JEA members, the assembly agreed to consider most of the suggestions put forward by the association’s council regarding the pension fund, including initiating two new levels of retirees, with pensions ranging between JD800 and JD1,000 per month.

The assembly also agreed to amend the fund’s subscription fees. 

JEA President Majid Tabba hailed the decision, noting that demographic changes, increasing membership numbers and changes in the purchasing power of the Jordanian dinar required a rise in subscription fees. 

“For more than 43 years, the fund has not witnessed a single change in its subscription fees,” said JEA Spokesperson Anas Abu Khudair, quoting Tabba.  

He added that studies had shown the significance of taking measures to rectify the association’s financial situation. 

Earlier this year, the association released the findings of an actuarial study which revealed that the fund broke even in pension subscriptions and pensions in 2014, three years earlier than expected. 

The fund expects to reach a second milestone — with expenditure equal to pension subscriptions and investment profits — in 2019 instead of 2021. 

Total revenues are expected to equal total expenditures in 2028, three years earlier than had been forecast, according to the study.  

The JEA council’s recommendations included increasing the pension premium, but the council underlined that the fund was “sound” and able to fulfil its financial obligations. 

The fund paid out JD22 million in pensions to 8,500 engineers in 2015. 

This year, the fund invested in four projects worth JD8 million, while its assets have reached JD400 million gained from investment revenues. 

In May, several engineers called on their syndicate to re-evaluate its investment strategy and to adopt a participatory approach with its members.

They stressed the need for the increase in the fund’s subscriptions to be reflected in pensions, which they said should be linked to the rising cost of living  and inflation rates.  

The JEA has 130,000 members, 40,000 of whom work abroad.