المملكة: Urgent: Details of the regulatory amendments related to retirement systems and transformation and allocation mechanisms
Acknowledge Cabinet A package of regulatory amendments related to Retirement and Mechanisms of transformation and allocation, included obligating government agencies to inform the General Organization for Social Insurance of transformation or allocation decisions within a period not exceeding 30 days from the date of their issuance.
In addition to providing them with all data and information regarding the employees and workers covered by these decisions within a similar period from the date of implementation.
Royal Decree Amending the Benefit Exchange System
Royal Decree No. “M/208” was issued on 9/20/1447 AH, after reviewing On Shura Council Resolution No. “14/178” dated 7/3/1447 AH, and Council of Ministers Resolution No. “687” dated 9/14/1447 AH, including an amendment to the system of exchange of benefits between the civil and military retirement systems and the social insurance system, issued by Royal Decree No. “M/53” dated 7/23/1424 AH.
The decree stipulated the deletion of paragraph “5” from Article Six of the Benefit Exchange System, with the directive of His Highness the Prime Minister, the ministers, and the heads of independent agencies to implement it, each within his jurisdiction, within the framework of modernizing the relevant legislation.
New foundations for addressing the actuarial impact
These amendments came based on a comprehensive study of the support mechanisms of the General Organization for Social Insurance, as the Council agreed to consider the actuarial impact resulting from the transformation and allocation processes as part of the nature of retirement systems, provided that it is measured through periodic actuarial studies prepared by the Corporation, with the possibility Compensating pension funds through interactive financing when they are exposed to a financial deficit.
The decision specified the mechanism for calculating this effect, by calculating the net actuarial gains and losses for all pension funds, with a focus on previous acquired rights only.
Termination of a number of articles and regulations
The decision included the termination of work with a number of previous articles and regulations, including the cancellation of Articles “26” and “27” of the rules for the treatment of employees in the sectors targeted for transformation and privatization issued by Cabinet Resolution No. “616” for the year 1442 AH.
In addition to ending the work of clauses “Fifth” and “Sixth” of the rules issued by Council of Ministers Resolution No. “210” for the year 1429 AH.
It also stipulated the cancellation of the provisions related to the formation of committees responsible for studying the additional financial costs resulting from the transformation or privatization, in addition to canceling everything issued by the technical committees whose decisions were not officially approved by the Council of Ministers, in a step aimed at unifying Regulatory references and strengthening governance.
Completing the transformation and privatization procedures
The Council of Ministers stressed the importance of completing the transformation and privatization procedures for the concerned authorities, in accordance with the new controls contained in the decision, ensuring their implementation in an orderly and consistent manner with the approved amendments.
The decision stressed the need for the entities to commit to informing the General Organization for Social Insurance of the transformation or privatization decisions within a period not exceeding 30 days from the date of their issuance.
In addition to providing them with all required data about employees and workers within 30 days from the date The application contributes to preserving insurance rights and enhancing the efficiency of data exchange between government agencies.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Twitter
