GPSSA offers detailed advice on ways to continue service years without interruption
Abu Dhabi, 31st October 2023 – The General Pension and Social Security Authority (GPSSA) calls on insured Emiratis to improve their retirement decisions and take advantage of some of the best insurance benefits, through exploring three available options prior to deciding to terminate their employment contract.
The first option is taking advantage of the conditions underlined in the “Shourak” project which was introduced by the GPSSA for individuals whose employment services have ended after July 2023 (the date by which project was introduced and announced). The second opportunity is to take advantage of the benefits available in transferring jobs between governmental authorities affiliated with the GPSSA as per the UAE Pension Law; while the third option includes benefiting from the “system for exchanging insurance benefits between pension funds operating in the UAE” under the Cabinet Resolution No. 46 of 2019.
As part of GPSSA’s “End It Right” awareness campaign, and as per controls and provisions set by the UAE Pension Authority, it is important to be aware of the projects that allow insured individuals to move from one employer to the other, while retaining their end-of-service benefits without the need to incur additional costs for the purpose of merging service years when move to a new job.
Shourak’s main goal is to support insured Emiratis to become entitled to receive the highest pension amount possible by completing the necessary period of time, without the need to bear any merge related costs. It is important to remember however that Shourak is only catered to employees working in entities registered with the GPSSA. If the entity is not registered, there are other options insured Emiratis can pursue, some of which includes “the system for exchanging insurance benefits between pension funds operating in the UAE” - an exchange system which was approved a few years ago that has had a significant impact in facilitating the movement process for Emirati employees to different entities across the UAE, since employment years are uninterrupted, resulting in accumulating service periods without resorting to the merge option, thus enhancing their chances in obtaining the best possible pension benefits.
The exchange insurance benefits system includes all or any pension authorities that are subject to the UAE Pension Law alongside its pension conditions, whether shifting jobs from a federal to a governmental sector or from the military service to the civil service, or vice versa. The process is governed and dependent on the human resources regulations in each emirate, making it one of the most important and beneficial features available in the UAE Pension Law, since it supports insured Emiratis in merging their employment years and enhancing their chance to receive a rewarding pension and retirement plan, without the need to incur any additional costs.
However, the system for exchanging insurance benefits is only applicable if the insured individual’s entity is registered with a UAE-based pension fund, and that the insured has been transferred after a decision has been made by a competent authority subject to the system.
Insured individuals must be fully aware of the mechanisms for exchanging benefits and the fund costs, which are calculated based on the end-of-service gratuity of the previous contribution period for the insured individual transferring jobs, leading to a pension entitlement or gratuity. The insured must also be aware of the total amounts paid if he/she is not entitled to a pension or end-of-service gratuity. Additionally, if the transfer is based on an entity’s request, they are obligated to pay the financial differences, which are calculated on the cost of adding the previous service period and the transfer cost, differences that are calculated in accordance to the provisions of the system to which they are transferred.
The procedures involved in transferring and exchanging insurance benefits should be completed within a period of not more than six months from the date of the specified transfer decision.
