An explanation from the "pensions" about purchasing a nominal service period
The General Authority for Pensions and Social Security clarified that Federal Law No. (7) of 1999 for Pensions and Social Security and its amendments authorized the insured to purchase a nominal period of service in order to improve the pension rate and not to fulfill the conditions of pension entitlement, and therefore the most important of its conditions is that the insured has met the minimum Of the contribution period for which the retirement pension is due, which is twenty years, while the law grants women the right to purchase (10) years, while a man may purchase (5) years.
This came as a comment on a publication containing inaccurate information about the purchase of the nominal service period that was published and circulated on some news websites on social media channels, excerpted from a news story published by a local newspaper in which it indicated that one of the conditions for purchasing the term of service is that the insured submit to resign after Completion of 20 years, and this is not included in the conditions for purchasing a nominal service period, and it is correct that it is required to purchase a nominal service period to submit a purchase request before the end of the service period in addition to the requirement to spend 20 years in service to be able to purchase and this applies to both women and men, and the cost of Purchase before the end of the service, regardless of its reason, to take advantage of the periods to be purchased, and in the event of death the installments will continue to be collected from the pensions of the beneficiaries, otherwise the purchased period is calculated corresponding to the amounts actually paid.
The Authority indicated that the insured can pay the cost in one payment or in installments, whereby 50% of it is paid as an advance payment and the rest of the purchase cost is paid in monthly installments, provided that all costs are paid before the end of the service.
In detail, the Commission clarified that Federal Law No. (7) of 1999 for Pensions and Social Security and its amendments authorized the insured to purchase a nominal service period in order to improve the pension rate and not to fulfill the conditions for pension entitlement. Therefore, its most important condition is that the insured must have fulfilled the minimum period of contribution Which is entitled to the retirement pension, which is twenty years
The authority said the law grants women the right to purchase (10) years, while a man may buy (5) years, and since this service is optional, the law did not stipulate the purchase of the entire period, but rather allowed the purchase of any period that can be purchased within the years specified for both, so that it is granted each year A pension improvement rate of 2% is purchased, and this benefit is enjoyed by workers in the government and private sectors.
And she said, "For example, if an insured woman has spent twenty years in service, she is entitled to a pension at the rate of 70% of the pension calculation salary. If she buys 10 years for a nominal service period, the pension rate rises to 90%, as each year she bought her contributed to an increase in her pension by 2 %. "
Noting that the purchase cost is calculated on the basis of the contribution calculation salary on the date of the purchase request multiplied by 20% multiplied by the period to be purchased in months.
It indicated that, for example, 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 join application is 20 thousand dirhams, and she wants to buy 6 years of a nominal service period, the purchase costs will be calculated as follows: (20,000) dirhams x 20% x 72 months = AED 288,000 purchase cost.
The authority called on all its customers to confirm the news through its official sources, which is the website or its unified account on social networking sites (GPSSAAE) on Twitter, Instagram and Facebook, or through the call center on the toll-free number 80010.
The news sites also called for accuracy in what is published, especially so that it does not affect the awareness of the public or the media messages that the authority is working to deliver to the public through its awareness channels, stressing that all media are partners on which we rely on delivering our awareness messages accurately to the customers and the audience of followers. And the specialists.
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