Purchasing ‘Nominal Service Period’ Increases the Monetary Value of the Pension Value
Abu Dhabi, UAE - xx August 2026: As part of its recently launched Pension Awareness Programme, the General Pension and Social Security Authority (GPSSA) highlighted the 'Purchase of Nominal Service Period' service, one of the most vital insurance solutions available, enabling insured individuals to secure their retirement future by increasing their calculated contribution period, thereby positively impacting the pension value and end-of-service benefits.
Key Advantages of Purchasing Nominal Service Period
As an essential tool for early retirement planning, purchasing a ‘Nominal Service Period’ offers insured individuals several key benefits, including:
- Increasing the approved contribution period used to calculate the retirement pension.
- Raising the pension amount due to the increased years of credited service,
- Enhancing financial stability for insured individuals after concluding their professional careers.
Conditions and Controls
The Authority explained that purchasing a ‘Nominal Service Period’ is subject to specific rules and guidelines aimed at offering insurance equity and maintaining the sustainability of the pension system. Crucially, the insured person must already meet the minimum service period required to qualify for a retirement pension, as purchasing is intended to enhance the pension amount rather than fulfil eligibility requirements.
Furthermore, applicants must be UAE nationals covered by the provisions of the Pension and Social Security Law and active in their employment at the time of submission. Applicants are required to settle the designated financial cost for the period to be purchased in accordance with legally established mechanisms, provided that the purchased period does not exceed the maximum limits stipulated by law. The purchased period is subsequently included in the contribution period for pension entitlement and other insurance benefits under the governing legal frameworks.
The Authority emphasised that purchasing ‘Nominal Service Period’ is essential due to the direct link between pension value and the duration of insurance contributions, with more years of contribution leading to a larger pension and improved final retirement benefits.
Insured individuals who plan early for their insurance future can leverage this service to secure a better retirement pension, the GPSSA noted, particularly in cases involving fewer years of service or when individuals seek to maximise their total legally approved contribution period with the Authority.
A Call for Early Planning
The General Pension and Social Security Authority urged insured individuals to regularly review their insurance status and utilise available digital services to understand the impact of purchasing ‘Nominal Service Period’ on their future entitlements. It stressed that making informed insurance decisions during employment years contributes to building a more stable financial future upon retirement.
In conclusion, the Authority affirmed that the Pension and Social Security System offers a comprehensive range of options designed to assist insured individuals in strengthening their insurance rights. The service for purchasing a ‘Nominal Service Period’ remains at the forefront of these options, playing a key role in supporting the financial and social stability of Emirati citizens and ensuring a dignified life after service.
Did you find this content useful?
You can help us improve by providing your feedback about your experience.
