Thursday, July 18, 2024

New Amendments to Pension System in Abu Dhabi

Date:

The Abu Dhabi Pension Fund announced amendments to the Pension Law and introduced new benefits aimed at maintaining a competitive and sustainable pension system that achieves parity between citizens working in the public and private sectors in the emirate. A modern and flexible pension system that adapts to the operational and social needs of the insured and allows… the opportunity to receive better pension benefits while continuing to work after the minimum service eligible for retirement.

The amended Act applies to the insured who continue in service, without prejudice to their vested rights, the insured retain the right to calculate their pension for the period of their service as per earlier system and the same applies to other insurance benefits. Insurer received under the system prior to amendment.

One of the most important amendments involving the pension system is to increase the maximum percentage of superannuation pension to 100% of salary, subject to deduction on completion of maximum years of service, where the insured gets 80% of superannuation pension. Salary deduction is to be made on completion of minimum years of service (25 years) eligible for retirement and for each additional year of service he can increase this percentage equal to 2% annually till he reaches 100% of his salary. A deduction which was not present in the pre-amendment system as the percentage of retirement pension was stopped at 80% despite the insured having worked for long years.

The revised pension law equalized insurers working in the public and private sectors, unified the method of calculating retirement pension for all insureds and required new ones to be calculated based on the average salary course, the fund said. Deductions are to be made for the last six years, and the maximum salary for the insured is aggregated.

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As per the amended law, the percentage of pension contributions was 26% of the salary subject to deduction, of which the new insured pays 11%, while the employer pays 15% without any change in the percentage of pension contributions. Current Insurance (Continuing in Service).

Under the amended Act, the minimum pensionable age has been fixed at 45 years in the first year of application, after 25 years of service, the age is gradually increased at the rate of 6 months every year until reaching the age of 55 years.

Considering the role of the family in building and nurturing society, the revised pension system includes benefits for women who have children.

These amendments have also provided many new features such as optional subscription system has been introduced for women who have given birth to children and women who want to leave work to devote themselves to family and retirement to ensure continuity of retirement benefits. The new amendments have also provided students with the same option.

With the aim of providing an opportunity for national expertise to continue to contribute in various fields, the new amendments allow the joining of retirement pension and salary after completing the maximum years of service or reaching the retirement age specified by law. national economy in the long run.

An insured person who fulfills one of the retirement conditions under the previous pension system will be eligible for retirement under the new pension system, while being given the option to continue working to benefit from the new benefits offered by the revised system, particularly the percentage of incremental opportunity pension that will be deducted on completion of 100% of salary. Maximum years of service.

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Salem Rashid Al Nuaimi, Managing Director of the Abu Dhabi Pension Fund, said: “Revising the pension system in the Emirate of Abu Dhabi contributes to improving the quality of life of citizens enrolled in the fund and providing them with a decent life after retirement. It conducts financial audits and reviews of the pension system to ensure that citizens’ rights are protected and their futures and futures are protected. Service organization in the emirate.

He added: “Therefore, we are keen to support the Emirate’s guidelines in designing flexible and modern systems that can meet the needs of future generations and adapt to all social and economic developments. A gradual transition phase is designed to implement the amendments. The law contributes to the flexibility to implement these amendments, while at the same time upholding the principle of security.” emphasizes.” All rights were vested under the system prior to the amendment.”

Khalaf Al-Hammadi, Director General of the Fund for Pension Affairs, said: “Flexibility and flexibility of laws and regulations and their ability to adapt to changes is one of the measures of maturity of governments and countries. The pension system is an essential part of the system of laws and regulations that regulate the functional and social aspects of citizens, and the work on revising the Emirate Pension System of Abu Dhabi is in line with the legislative approach in the UAE and its continuous effort to review the law. and regulations and works to address the gaps in them and develop them in line with the rapid developments taking place in the country.

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He added: “Important among the amendments, which include new features not present in the previous system, is the possibility for insured persons to receive 100% of their salary as retirement pension, which narrows the gap between incomes. “before and after retirement,” emphasizes that there shall be no prejudice to the rights acquired by the insured. Under the earlier law, the insured shall retain all the rights acquired under the previous pension scheme whether he attains the age of retirement or attains any other insurance. The benefits and amendments will be phased in over the coming years.

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Bill Dittman
Bill Dittman
"Freelance alcohol fan. Coffee maven. Musicaholic. Food junkie. Extreme web expert. Communicator."

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