“Annuities”: 20 years of service is a condition for purchasing a “legal period”

The General Pension and Social Security Authority confirmed that the purpose of purchasing the nominal service period is to increase the percentage of the pension upon retirement, and therefore one of the most important conditions for the purchase is that the insured has fulfilled the period required for entitlement to the retirement pension, which was specified by law in the event of voluntary resignation by at least 20 years. , in service.

The Director of the Pension Operations Department, Muhammad Saqr Al Hammadi, said: “The purchase of the service period is not done in order to meet the required period to obtain the retirement pension, or to meet the age condition to obtain the pension linked to reaching the age of fifty, because the insured in fact buys a period of service and not an age. ".

Al Hammadi added: “The insured cannot count the purchased period to give him the right to combine the pension and the salary when spending 25 years in government work, as it is required that this entire period be an actual service period and does not include any purchased service period.”

The law grants the man the right to purchase for five years, while it discriminates against the woman and grants her the right to purchase 10 years, and each year purchased gives the insured an increase of 2%, and because the purchase is optional, the insured or her can purchase any number of years specified for each of them without a requirement to purchase the entire period.

For example, 20 years of service gives the insured a retirement pension at the rate of 70% of the average contribution account salary. Her pension percentage and she bought 10 years, her pension will increase to 90% of the average contribution salary in both cases.

Although the law defines the terms available for purchase for both men and women, the maximum period of the retirement pension is 35 years of service. The maximum pension can be measured against that in the rest of the cases.

One of the conditions of purchase is that the insured should be on the job, as it is not permissible to purchase after the end of service or retirement unless the retiree returns to work again. .

Purchase costs are calculated on the basis of the subscription account salary at the date of submitting the purchase order multiplied by 20% multiplied by the period to be purchased in months. As follows: 20,000 x 20% x 60 months = 240,000 dirhams.

The purchase cost is considered a long-term investment in the retirement pension because the insured recovers the full cost in a short period after retirement and his pension continues to be paid, but at a higher percentage than that he could have received without purchasing, and this is what makes it one of the important advantages in the Federal Pensions Law.

The insured can pay the cost in one go or in installments so that 50% of the total amount is paid as an advance payment and the rest of the purchase cost is paid in monthly installments, provided that the installment period does not exceed four years or the contributor reaches the age of sixty, and the value of the monthly installment is not less than a quarter of the account salary. Subscription, and that all purchase costs be paid before the insured's service ends.

In the event of the death of the insured, premiums continue to be collected from the pensions of those entitled on his behalf, and in the event that the contributor is unable to pay the full purchase costs, the purchased period is calculated in proportion to the amounts actually paid.

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