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The GPSSA explains the provisions resulting from a pensioner's return to work

Last Updated 26/08/2024 08:33
The GPSSA explains the provisions resulting from a pensioner's return to work

Abu Dhabi, 25th March 2024:  The federal pension law does not prevent pensioners from returning to work again, provided that they are under the age of 60 and have their employer register and pay their due monthly contributions on their behalf, affirmed the General Pension and Social Security Authority (GPSSA). 


Pension payments will be stopped however, if it has been proven that upon the pensioners return to work, the salary received by the new entity is equal to or greater than the value of the pension due for the period of service upon retirement, as per the concerned provisions regarding merging pension and salary.


It is possible to combine pension and salary, given that the pensioner has retired from a governmental job for a period of 25 years or more, and that the employment period has not ended due to a termination, disciplinary decision or a judicial ruling, or for reasons other than those mentioned in Article (16) of Federal Pension Law No. (7) of 1999 for Pension and Social Security and its amendments.


Pensioners are able to combine pension and salary prior to the implementation of the provisions of Federal Pension Law No. (7) of 1999 for Pension and Social Security and its amendments.


Likewise, a pensioner can merge two pensions if the pension he/she is entitled to is paid from a fund other than that of the GPSSA.


Widows may also combine their own pension with that of their deceased husband’s pension, as well as between her share in her husband’s pension and the salary she receives from work.
 

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Frequently Asked Questions

What periods may the Insured merge?

• Previous service periods with any employer subject to the provisions of the Federal Decree-Law

•Previous service period prior to acquiring the UAE nationality

•Previous service periods in any entity determined by the Cabinet

What are the conditions for an insured’s registration with the GPSSA?

• The individual must be a United Arab Emirates national

• The individual must be between the ages of 18 to 60

• The individual must be medically fit to work upon appointment, as evidenced by an approved medical report

• He/she must work for an employer subject to the provisions of the law applied by the GPSSA

If a pensioner from the GPSSA returns to work, and their pension disbursement was suspended because their salary was greater than the pension amount, and they contribute again under the provisions of the law, how will their service be settled in the future if they leave work?

· If they become entitled to a pension for their subsequent service period, they shall be disbursed the larger of the two pensions, whether it's the one they are entitled to for their previous service period or for their subsequent service period

· If they become entitled to a gratuity for their subsequent service period, the gratuity shall be disbursed to them, and the suspended pension shall be reinstated for disbursement

If an employer paid excess amounts to the GPSSA, is there a specific period within which they have the right to claim them back?

Yes, the employer may reclaim any amounts they paid to the GPSSA that exceed the required contributions, but under condition that they claim them within two years from the date of payment.

Is there a mechanism that the Insured, Pensioner, Beneficiary, or any interested party must follow to claim their rights and have reconsidered before resorting to litigation?

Before a rights holder can go to court, they must first appeal the pension or gratuity decision to the Insurance Appeals Committee formed by the Board of Directors, and this must be done within five years of becoming entitled to the pension or end-of-service payment. This means the committee must be petitioned before taking legal action against the employer, and the appeal has a five-year deadline. 

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