“Pensions”: buying a nominal service period to improve the pension and not to meet its maturity period – UAE – News and Reports

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The General Authority for Pensions and Social Security said that the purchase of nominal service periods is not for the purpose of fulfilling the period determined for the entitlement of the retirement pension, but rather to improve the pension rate upon retirement.

She explained that the nominal service periods are considered non-actual periods that the insured can purchase to add to the periods of his actual service to increase the value of his pension upon retirement, and the man has the right to purchase 5 years that gives him an increase in the pension by 10%, while the woman has the right to purchase a maximum of 10 years that gives her an increase in the pension by 20 %, Indicating that this service is optional and therefore any of them can buy any number of permitted years and not buy the entire period. She pointed out that the purchase would be within the years qualifying for reaching the 35-year service period, which is the period that qualifies for the maximum pension. For example, if the actual service period of the insured person or insured is 33 years, then they may only purchase two years to complete the period eligible for the pension to the maximum, despite the fact that the law has permitted them to purchase a period longer than that, and accordingly, any purchase for a period of service The period of actual service should not exceed 35 years.

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