Pensions: If the insured is satisfied with spending 20 years in service, he loses many insurance benefits

Abu Dhabi, May 22 / The General Pension and Social Security Authority said that if some of the insured are satisfied with the period that qualifies for obtaining a retirement pension in its minimum limits, they lose many of the insurance benefits provided by the Pensions Law when their service period is increased.

She added that the retirement pension is granted to workers in the government sector according to the average salary of the subscription calculation for the last three years of service, and in the private sector for the last five years of service or the entire subscription period if the period is less than that in both cases, and when it is sufficient to spend 20 years in service, the insured gets the The pension is at the rate of 70% of the average salary of his contribution calculation, and this period provides the minimum level of insurance privileges that the Authority does not advise the insured to be satisfied with at its limits due to the increase in living obligations in the future.

As part of its campaign for proactive planning for post-retirement, “Be Prepared,” the Authority stated that many insurance benefits remain waiting for the insured if he decides to continue serving beyond this period, noting that the insured is the one who decides the insurance benefits he wishes to obtain from Pensions Act that provides many more generous insurance opportunities when the length of service is increased.

The Authority enumerated the first of these benefits, as it indicated that the retirement pension is granted at 70% of the average contribution calculation salary when the insured spends 20 years of service, and each additional year that the insured spends after this period is granted an increase in the pension by 2%.

She explained that the advantage of the insured reaching 20 years of service is that it qualifies him to purchase a period of legal service, as the law allows men to purchase from 1 to 5 years, while women are granted to buy from 1 to 10 years, and this non-actual period is added to the years of service of the insured in the event He decided to retire after 20 years of service and improve his pension upon retirement.

The authority said that although the insured benefited from reaching the service period of 20 years that qualifies him to purchase the service, the purchase costs him, and therefore it recommends continuing to work after 20 years and spending actual years of service in order to save the purchase cost, especially with the possibility of increasing the insured’s salary in the future. Thus, increasing his contribution account salary, which entails increasing his benefits upon retirement.

She added that reaching a period of 25 years of service gives the opportunity to combine the pension and salary for those who spent 25 years working in the government sector, in the event of his retirement and return to work again, as the law allows him to combine between his pension from the Authority and his salary from his new job, although The general rule in the law does not allow plural except under conditions and this is one of them.

She said that the insured woman’s 25 years of service supports her quest to obtain the maximum retirement pension at 100% of the average contribution account salary if she decides to retire for this period with the purchase of 10 years as a legal period, while the man needs to spend 30 years in service to reach the period Entitlement to a maximum pension after purchasing a 5-year nominal service period.

The authority pointed out that the insured’s 35 years of service qualifies him to obtain the pension at the maximum rate of 100% of the average contribution account salary, in addition to that every year spent by the insured after 35 years gives him a reward of 3 pension account salaries.