“Pensions”: a request to purchase a “nominal period” ... before the end of the service

Annuities: the insured person can pay the cost in one payment or in installments.

From the source

The General Pensions and Social Security Authority said that in order to purchase a nominal service period - for a woman and a man - the purchase request must be submitted before the end of the service period, in addition to the requirement to spend 20 years in service.

The cost of the purchase must also be paid before the end of the service, whatever its reason, to take advantage of the periods to be purchased.

And she continued: “In the event of death, the installments will continue to be collected from the pensions of the beneficiaries. Otherwise, the purchased period is calculated in proportion to the amounts actually paid,” noting that “the insured can pay the cost in one payment, or in installments, so that 50% of it pays an advance payment,” He shall pay the rest of the purchase cost in monthly installments, provided that he will pay the full costs before the end of service.

The Authority clarified that the Federal Law on Pensions and Social Security and its amendments allowed the insured to purchase a nominal service period in order to improve the pension rate, and not to fulfill his entitlement conditions, and therefore the most important conditions for the insured are that the insured meet the minimum period of contribution for which he is entitled to the retirement pension, which is 20 years.

"The law gives women the right to buy 10 years, while men can buy five years," she said.

And since the service is optional, the law did not stipulate the purchase of the entire period, but allowed the purchase of any period that could be purchased within the years specified for both, so that every year purchased would be granted a pension improvement rate of 2%, and this advantage is enjoyed by workers in the government and private sectors.

She said, "If an insured woman has spent 20 years in service, she is entitled to a pension of 70% of the pension calculation salary. If she buys 10 years of nominal service period, the pension rate will rise to 90%, because every year she bought it contributed to an increase of her pension by 2%." .

She indicated that the purchase cost is calculated on the basis of the contribution calculation salary at the date of the purchase request multiplied by 20% multiplied by the period to be purchased in months.

And she said, “If there is an insured woman who receives a total salary of 25 thousand dirhams, and the salary of her subscription account at the date of submitting the addition application is 20 thousand dirhams, and she wants to buy six years of nominal service period, the purchase costs will be calculated as follows: 20,000 dirhams x 20% x 72 One month = 288 thousand dirhams, which is the purchase cost.

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