The Cabinet’s Resolution approving the Benefit Transfer System between different pension funds in the UAE reflects the keenness of the Government to continuously serve and satisfy the Emiratis and simplify what they need in all affairs relate to their career and life lines, whereas the system contributes to facilitate the movement of national expertise and qualifications between employers and pension funds in the UAE which at last benefiting the nation and citizens alike. 

The issuance of the system is based on the Federal Law No. 6 of 2006 as amended by the Pension Law issued on 03/07/2006, whereby, as per Article 3-bis, the GPSSA shall set the regulation of exchange of the benefits between the retirement funds operating in the UAE, as none of the previous pension laws related to civilians in the UAE have not organized the movement process in particular but only provisions to combine the previous service period of the insured to the subsequent service period upon its end and joining new employer whether registered with the same or another pension. 

The system concept came out of the resolutions previously issued by the Cabinet transferring a group of public employees from federal to local government entities in Abu Dhabi. Such resolutions included the mechanism of transferring their subscriptions from the GPSSA to Abu Dhabi Retirement Pension & Benefits Fund in a way guarantees the non-prejudice of their rights or interests out of this transfer and to maintain their pension dues when their service ends by combining their services with the GPSSA and Abu Dhabi Retirement Pension & Benefits Fund and calculating their EOS gratuity for both periods.

The concept of benefit exchange initiated by an MOU signed on 24/12/2013 with Abu Dhabi Retirement Pension & Benefits Fund, organized the transfer of insured to local government entities in Abu Dhabi for example the insured moved from Ministry of Education to Abu Dhabi Education Council, from Ministry of Justice to Judicial Department, from Ministry of Health to Health Department and many other entities who applied this agreement oven many transfers between the GPSSA and Abu Dhabi Retirement Pension & Benefits Fund before 24/12/2013 only.

In response to the government trend to provide comprehensive mechanism to apply this system for the benefit for all employees working with the pension funds in the UAE through joint team with Abu Dhabi Retirement Pension & Benefits Fund as strategic partner for the GPSSA to socially protect the Emiratis at the national level to prepare the project of this system which reflects the perspicacity of the Government and its efforts exerted to serve the Emiratis better and to cope up with all changing factors, most importantly facilitating the movement of employees between different sectors to support the national efforts to achieve pioneer and unique business model.

In addition to that, the system is holistic and opens up horizons for all insured covered by any pension funds operating in UAE by moving between employers whether local, federal or military. The ultimate gaol of this system is to facilitate the transfer of Emirati insured between different entities and being covered by the Pension Law applicable to all new employers. Also, it facilitates the transfer of national talents between different entities in the UAE without limitations like considering the financial consequences involving the transfer and to exchange expertise between entities to achieve the vision of the Government to continuously enhance its position and competitiveness in terms of international entrepreneurship. 

The provisions of this system shall apply to all insured transferred by a decision of the competent authority to work for different entity following another pension fund, but this excludes the previous transfers completed between the GPSSA and Abu Dhabi Retirement Pension & Benefits Fund as per the signed agreement. Moreover, it is conditional for applying this system on the transferred insured that the transfer decision is issued as per the regulations applicable to federal or local government, and the subscription period for the insured in the old system is continuous and complementary

to the subscription period of the new system. 

Mohamed Saif AlHamli

General Pension & Social Security Authority