ABU DHABI, 25th May, 2023 (WAM) — The General Pension and Social Security Authority (GPSSA) has implemented a retirement scheme to ensure the well-being of insured individuals and their families. The scheme provides a stable income to maintain a similar standard of living enjoyed before retirement, considering occupational risks or illnesses that may arise, particularly in old age.
As part of the "Get Ready – Proactive Financial Planning" campaign launched by the GPSSA, valuable information is being offered to customers to consider at various stages of their retirement journey, including pre-retirement, early retirement, mid-retirement, and late retirement. The UAE Pension Authority highlights multiple benefits that insured persons and their family members can avail themselves of when registered with the GPSSA.
However, to enjoy these benefits, insured individuals must meet the pension entitlement criteria and become eligible to receive compensation in the event of disability, work-related issues, or death. In such cases, insurance protection is extended to the family of the breadwinner.
Statistics from the GPSSA revealed that the total expenses in 2022 amounted to AED4,692,556,998. Out of this, AED3,967,736,834 was disbursed for retirement pension purposes, AED721,005,168 was allocated for end-of-service benefits, and AED3,814,996.80 was the cost of disability compensation, work-related injuries, and death benefits. These figures demonstrate how social insurance provides long-term benefits and security for family members and future generations.
To continue serving the community effectively, the GPSSA emphasises the need for joint efforts and cooperation from all relevant parties. These parties need to raise awareness and update their knowledge regarding the advantages available under the UAE Pension Law. Furthermore, they must diligently fulfil their roles and responsibilities to enhance social stability, which benefits insured individuals and their families.
Employers and entities also have a crucial role in adhering to the registration and monthly contribution payments on behalf of their insured employees. They must ensure timely and accurate contributions, avoiding unauthorised practices such as charging insured individuals with percentages not stipulated by the law. Failure to comply may lead to consequences for tampering with the rights of insured persons.
Likewise, insured individuals must contribute to the sustainability and protection of both their rights and those of the GPSSA. They should ensure that their contribution transfers are paid accurately and promptly while striving to work for the longest period possible to maximise fund returns upon retirement.
If the aforementioned conditions are not carefully implemented, the GPSSA may face a decrease in resources while dealing with increased liabilities due to an equal number of pensioners reaching a ceiling similar to that of contributors. This situation can hinder the GPSSA's efforts to provide the necessary financial resources and fulfil its future obligations towards eligible social insurance members.
Pensioners and beneficiaries are responsible for managing pension disbursements appropriately and reporting any changes in their eligibility status promptly to receive their pensions and/or pension shares on time. Failure to do so may result in excess amounts spent being returned to the GPSSA.
In conclusion, the GPSSA reiterated its advice for Emiratis subject to the UAE Pension Law to register with the authority within the first month of employment. They should also monitor the transfer of their monthly contribution funds alongside their employers/entities while considering extending their employment years to enjoy sustainable returns.