The Pensions Authority explains the benefits of the insured’s participation in pension systems

The General Pensions and Social Security Authority said that subscribing to social insurance is the first step to obtaining the insurance benefits that are available to the insured by subscribing to the pension systems that the Authority is implementing in the UAE alongside other retirement institutions.

She explained that In exchange for the subscription, according to which a portion of the insured’s subscription salary is deducted and paid monthly to the Pensions Authority, the Authority provides the subscriber with many insurance features and benefits during his subscription period and beyond, so that if the subscriber, God forbid, is exposed to any health risk or impediment during the period of employment, he will be covered by paying him a fixed pension that will continue without interruption until death, or if his service ends naturally after completing the period for obtaining the pension, the pension will be paid to him from the following month.

The Authority indicated that the payment of the pension extends after death to those entitled to those who were supported by the pensioner as long as they meet the eligibility conditions without being linked to any period, as a daughter, for example, does not withdraw from the pension for reasons of age, as well as a widow if her marital relationship with the pensioner continues.

The Authority explained that retirement benefits vary and increase with increasing years of service, as the length of service increases, the percentage of these benefits increases year after year, up to the maximum period eligible for obtaining a retirement pension, which is working for 35 years and receiving a pension at a rate of 100% of the salary on which the retirement pension is calculated, which is the percentage that is also granted in cases of death or total disability resulting from a work injury.

The first of these benefits is obtained by the insured after completing the first year of service, as he receives an end-of-service reward for a period exceeding one year, while a period less than that does not entail any retirement rights.. However, during this period the insured continues to be covered and enjoy all insurance benefits, so that he can later add them to his new service. Also, God forbid, if he is exposed to any of the risks of disability, death, or contracting any occupational disease, he will benefit from all the benefits provided by insurance regardless of his age or length of service, while remaining covered by insurance for protection purposes during the period of work, as the employer is obligated to register him and pay contributions in a way that guarantees him coverage in emergency situations.

The Authority explained that if the period of service exceeds one year, the insured begins to enjoy the insurance benefits that are available to him through subscribing to the insurance. The first of these benefits is obtaining an end-of-service reward for the period he spent as a subscriber in the insurance, the value of which increases as the years of service increase, as the insured is given the reward at the rate of one and a half months for the first five years of service, and it rises to two months for the second five years of service, and it rises to three months for the years of service that follow that.

Longer years, more benefits

The Authority indicated that if the insured continues to work for longer periods, he will enjoy the opportunity to obtain a retirement pension, which represents the ultimate goal of participating in insurance. The value of the pension increases, such as a reward, with increasing years of service, while enjoying many other additional benefits that arise as a result of increasing these years, such as the possibility of purchasing legal years of service, combining the pension and salary, or obtaining an additional reward for periods exceeding 35 years, at the rate of three salaries from the pension account for each year.

The most important advantages

The Authority drew attention to the important advantages resulting from participation in insurance, the most important of which is achieving social stability for the insured and his family, and this is perhaps the most prominent advantage of all, as providing a stable income for the insured and his family in the event of any risk arising is the most prominent pillar and pillar in the family’s enjoyment of factors of psychological, social and financial stability, whether in the short or long term, and it is an advantage provided by the pension systems that are applied in the UAE and which are based on the principle of community solidarity between participants and retirees, generation after generation.

The Authority stressed that the insured’s knowledge and awareness of the rights and privileges provided by pension laws enables him to do two basic things. The first is that understanding insurance rights helps the insured plan his professional career in a constructive manner, especially since any transfer from one employer to another results in a different insurance situation, which requires familiarity with its details in order to make the most of it. Second, enabling the insured to plan early for retirement in a correct and appropriate way, in order to achieve the maximum possible benefit for him from the benefits provided by the subscription. In insurance.

What to know

One of the most important insurance matters that the insured must be familiar with is knowing how to calculate his insurance rights, whether they are a pension or a reward. This knowledge arises through his knowledge of several insurance elements or terms, which are determining the contribution account salary, the average contribution account salary, and then determining the pension account salary based on entitlement percentages according to years of service.

However, the Authority, within the framework of the electronic transformation program and its launch of many digital services, has provided many knowledge channels to access these terms and know them precisely. Through the Maashi platform, one can view the individual’s subscription account salary, the value of the pension or the expected end-of-service reward, the best years of service in terms of retirement, and other data, which provides benefit to the insured in terms of the ability to employ this information to serve his career path, enhance his insurance status, or plan for retirement in a realistic and ideal way at the same time.