The Abu Dhabi Retirement Fund disclosed that the implementation of the decision regarding the minimum retirement age for the insured, which is contained in the new amendments to the Retirement Law of the Emirate of Abu Dhabi (55 years), will be gradual at a rate of six months each year. This will result in the minimum retirement age gradually increasing to 55 years by the year 2044, which is twenty years after the date on which the decision was issued.
The Fund has confirmed that the new amendments did not approve any additional increase to the percentage of current retirement contributions for insureds who are continuing in service. This percentage amounts to 5% of the salary that is subject to deduction. However, the Fund has stipulated that the percentage of retirement contributions for new insureds, who will be registered with the Fund after the date of issuance of the new amendments, is 11% of the salary that is subject to deduction.
In detail, the Abu Dhabi Retirement Fund confirmed that the new amendments included in the Retirement Law in the Emirate of Abu Dhabi, which aim to achieve equality between citizens working in the government and private sectors in the emirate, by introducing new privileges, aim to maintain a competitive and sustainable retirement system, which includes the continuing insured. in service, without affecting the rights that they have acquired, in order to ensure that the insured person who is currently registered with the Fund maintains his right to calculate his pension for his period of service in accordance with the previous system, in addition to the other insurance benefits that he acquired under the retirement system prior to the amendment.
On Friday of last week, the Retirement Fund made an announcement regarding the modifications that were going to be made to the Retirement Law in the Emirate of Abu Dhabi. These modifications included the implementation of a flexible retirement system that would be in accordance with the functional and social needs of the insured. The most significant of these modifications was the increase of the maximum percentage of the retirement pension to one hundred percent of the salary, which would be subject to deduction once the maximum number of years of service had been completed. When an individual continues to work after the minimum number of years of service required to be eligible for retirement, which is 25 years, they have the opportunity to receive improved retirement benefits. These benefits are equivalent to 80 percent of the salary that is subject to deductions, provided that the insured individual has the ability to increase this percentage by two percent annually for each year of service. Additionally, until attaining one hundred percent of the pay that is subject to deduction, which was not available in the system prior to the amendment becoming effective.
