Buying 5 years increases pension by 10%

“Pensions”: the legal service improves the pension and does not fulfill its period of entitlement

“Annuities” allow installments for the purchase price of a nominal service period.

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The General Authority for Pensions and Social Security said that the purchase of nominal service periods is not for the purposes of fulfilling the period specified for the entitlement of the retirement pension, but rather to improve the pension rate upon retirement, and therefore one of its most important conditions is that the insured has fulfilled the period eligible for retirement entitlement, estimated at 20 years.

The Authority clarified that the nominal service periods are non-actual periods, which the insured can purchase in order to add them to the actual periods of service to increase the value of his pension upon retirement, and the man has the right to purchase five years that gives him a pension increase of 10%, while the woman has the right to buy 10 years as a maximum that gives her an increase in the pension By 20%, indicating that this service is optional, and therefore any of them can buy any number of permitted years, and not buy the entire period.

The Authority pointed out that the purchase is made within the years that qualify for reaching the service period of 35 years, which is the period that qualifies for the maximum pension.

For example, if the actual service period of the insured person or insured is 33 years, then it is not permissible for them to purchase only two years to complete the period qualifying for the pension to the maximum, this despite the fact that the law permits them to buy a period longer than that, and accordingly, any purchase for a period of service The actual service period should not exceed 35 years.

She indicated that the conditions for purchasing this period are for the insured to be at work, to submit the purchase request before the end of the service, and for the service period to reach 20 years at the time of purchase. Therefore, the purchase cannot be made if the insured deserves the pension for 15 years of service.

She said that the equation for calculating the cost of purchase is based on multiplying the contribution calculation salary on the date of submitting the purchase request x 20% is the salary of the contribution calculation for the insured and the employer x the period to be purchased in months and days, for example that if the salary of an employee’s contribution calculation is 20 thousand dirhams, and he desires In the purchase of five years, the calculation formula is 20 thousand (Contribution Calculation Salary) x 20% (the full contribution percentage for him and for the employer) x 60 (the period to be purchased in months and days), then the result will be 240 thousand dirhams.

It indicated that the purchase cost is to be paid in one payment or in installments, so that the insured, in the event of installments, pays a first cash payment equivalent to 50% of the total purchase cost, and the rest of the amount is to be paid in monthly installments of not less than a quarter of the monthly salary, provided that the installment period does not exceed four years Or, the insured person reaches the age of 60, whichever comes first.

She pointed out that if the service of the insured is terminated without paying the full costs, the purchased periods are calculated in proportion to the amounts actually paid, and in the event that the service of the insured ends with his death before the full costs are paid, the remaining purchase installments will continue to be deducted from the pensions of the beneficiaries.

Purchasing nominal service periods within the years qualifying to reach the service period of 35 years.

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