Article 16| September 2015 : UAE Retirement Age and Pensions Rumours Denied

UAE Retirement Age and Pensions Rumours Denied

by Al Mubasheri  |  September 2015

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Abu Dhabi, The General Pensions and Security Authority (GPSSA) has denied reports that the age of retirement will be raised and pension fund deductions increased. “The retirement age is still 60 and not 65 as the circulated reports claim,” said Mohamed Al Hameli, the acting director of the authority.

“Anyone who retires before the age of 60 would have opted for early retirement.” Reports also claimed that pension fund deductions would increase from 5 per cent to 15 per cent in four years. “We at the authority cannot affirm what the deductions are going to be,” he said. “They might be 5, 6, 10, 15 or even 18. A specialized committee that is discussing the amendments to the law will decide that.”

“All of those amendments will need to be discussed by the Federal National Council. What we’ve proposed are only the pillars but the clauses and all the details will need further studies and discussions.” Amendments to the pensions law of 1999 are also being discussed by several governing bodies, including the Cabinet and the Ministry of Presidential Affairs.

“The current law gives way more benefits to the public sector. Those differences need to be addressed to encourage citizens to join the private sector.” Another proposed point of discussion is the issue of fines of 2 per cent to institutions that are late to pay the amounts for those covered. This will help secure the benefits of those being covered under social security. Mr. Al Hameli urged citizens to have a broader mind and to think of the overall benefits of the new amendments.

“Citizens should be thinking of the greater benefits of the country as a whole,” he said. “We are all in this together and it is of all our interest to serve our country. Citizens’ rights are secure and will never be lost. ”The country’s guidelines encourage citizens to work for a longer period, Mr. Al Hameli said. This enables the government to benefit from its citizens’ experience.

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