Abu Dhabi
The UAE Government will spare no effort to safeguard rights of pensioners and social security beneficiaries, Obaid Humaid Al Tayer, Minister of State for Financial Affairs, told the Federal National Council early on Wednesday.
“The government will always endeavour to ensure earned rights of retirees and social security beneficiaries are maintained,” Al Tayer told the House during a 10-hour session, which ran from 9pm on Tuesday to 7am on Wednesday.
The minister said the government pays billions of dirhams in bonds plus accrued interest to maintain rights of pensioners and social security beneficiaries unscathed.
Al Tayer, also the deputy chairman of the General Pension and Social Security Authority, answered the FNC members’ queries and allayed their fears while taking part in the debate about changes to the law on the General Pension and Social Security Authority.
Hamad Ahmad Al Rahoumi, a member from Dubai, put a question to Al Tayer about whether the Finance Ministry planned to get the new Pensions Law enforced in the absence of the House’s approval.
The minister said his ministry was not authorised to get the draft law signed into a law.
In the UAE, contribution to the pension fund is 20 per cent of the basic salary, which is divided into two proportions where the employer pays 15 per cent and the employee 5 per cent which is deducted directly from the salary.
Al Tayer had assured members of the House in a previous meeting that new pension laws will offer equal treatment to Emirati workers in the government and local departments and the private sector.
“Equal pension benefits and obligations will be guaranteed in the new pension laws for Emirati employees in the federal government, local departments and the private sector to encourage movement between jobs in these sectors,” Al Tayer told the House in December.
Members of the House categorically rejected limiting the tasks of the General Pension and Social Security Authority to just pensions and changing its name to the “Pension Authority”.
Many members also insisted that the law must state that while proposing any changes, the board of the Pension and Social Security Authority must ensure at all times that the rights of pensioners and social security beneficiaries remain untouched.
Marwan Ahmad Bin Galita, an FNC member from Dubai, recently demanded that the pension ceiling of Dh50,000 for workers in the private sector be removed. “It is unfair that an Emirati employed by the private sector gets a maximum of Dh50,000 as a pension payout, while another citizen who put the same service and has the same skills in the public sector receives a pension of Dh300,000,” Bin Galita said.
Al Rahoumi also asked Al Tayer why the Pensions and Social Security Authority was not prompt in clarifying reports that pension laws would be changed.
The minister said he would not comment on rumours or leaks. “As far as changes to the pension laws are concerned, we have not reached the stage of a draft law as yet. All we have now is a number of proposals, which are discussed with the authorities concerned. We hope discussions will complete soon and a draft law is made and then presented to the FNC for approval,” Al Tayer said.
