Abu Dhabi, 25th May 2023: The retirement scheme implemented by the General Pension and Social Security Authority (GPSSA) aims to maintain the quality of life of insured individuals and their families through providing them with a stable income that supports them in sustaining a similar standard of living enjoyed prior to retirement, keeping in mind any occupational risks or illnesses that may occur, especially with ‘old age’.
As part of the ‘Get Ready - Proactive Financial Planning’ campaign that has been launched by the GPSSA to offer customers pivotal information to consider during their pre-retirement, early retirement, mid-retirement and late retirement stages, the UAE Pension Authority highlights multiple benefits that insured persons and their family members can acquire when registered with the GPSSA. However, to be able to enjoy those benefits, insured individuals must meet the pension entitlement criteria’s and become eligible to receive compensation in case of a disability, work-related issue, or decease - in which case insurance protection is extended to the breadwinner’s family.
GPSSA’s statistics indicate that the total value of expenses during 2022 reached Dh4,692,556,998 with Dh3,967,736,834 disbursed for retirement pension purposes, whereas Dh721,005,168 was spent on end-of-service benefits and Dh3,814,996.80 was the cost of disability compensations, work-related injuries and/or decease; numbers that show how social insurance offers long-term benefits and security for family members and future generations.
In order to succeed in continuing to serve the community as aspired however, the GPSSA emphasized the fact that a successful pension scheme entails joint efforts and cooperation from all relevant parties, who are required to raise their awareness and update their knowledge regarding the advantages they can obtain as per the UAE Pension Law, and practice their roles and responsibilities with due diligence in order to enhance their social stability, which not only serves an insured’s personal purpose, but that of his/her family.
Additionally, employers/entities play an immense role in adhering to the registration and monthly contribution payments on behalf of their insured employees, by contributing in a timely and accurate manner and avoiding any unnecessary and erroneous practices, such as charging insured individuals with percentages not stipulated in the law, which can result in facing consequences as a result of tampering with the rights of an insured person.
Similarly, insured persons play an important role in preserving their own, as well as GPSSA’s sustainability and protection rights, by making sure their contribution transfers are paid in an accurate and timely manner, while continuing to work for the longest period of time possible, in order to enjoy fund returns once retired.
If the above conditions are not carefully implemented, GPSSA may be faced with a decrease in resources in exchange for increased liabilities due to an equal number of pensioners reaching a ceiling similar to that of contributors, which can affect GPSSA’s efforts in providing the necessary financial resources and fulfilling its obligations towards eligible social insurance members for future decades.
Likewise, the role of a pensioner and/or beneficiary is to maintain pension disbursements within the accurate framework, and to report any updates on their eligibility status in order to become entitled to receive their pension and/or pension shares on time. Not doing so results in returning excess amounts spent to the GPSSA.
In conclusion, the GPSSA repeats its advice regarding ensuring Emiratis subjected to the UAE Pension Law register themselves with the authority within the first month of their employment and continue to monitor the transfer of their monthly contribution funds alongside their employers/entities, while trying to extend their employment years in order to enjoy sustainable returns.
Members are advised to continue working on achieving a balance between individual needs and their financial capabilities for their own interest and that of the UAE Pension Authority, who continue to exert efforts in providing transparent information to stakeholders in order to prevent unnecessary and preventable challenges with pension funds.