Beneficiaries are dependent on insured citizens in GCC pension scheme: GPSSA
ABU DHABI, 26th December, 2021 – The GCC pension scheme provides social protection not only for GCC nationals working in any GCC country, but covers their beneficiaries in the future too.
In a statement issued by Hanan Al Sahlawi, Executive Director of the Pensions Sector and Chairman of the Technical Committee representing the UAE in the meetings of the Permanent Technical Committee for Civil Retirement and Social Security Apparatus in the GCC countries, said, “Despite the importance of this system and the unwavering benefits it provides, there is still a need to raise awareness amongst GCC citizens, who at times tend to enjoy their current income and standard of living, believing that their income is ample enough to secure their future and that they do not need to participate in the pension system.
“It is extremely important to highlight the fact that an insured citizen’s pension provides long-term futuristic benefits to his/her beneficiaries after their death, since the pension systems in the GCC region as well as across the Arab world were introduced to secure the current and future generations alike,” Al Sahlawi said.
“On the other hand, other challenges are experienced with some employers who refuse to register a GCC citizen in order to avoid paying the percentage of his/her contribution, despite the fact that not registering and contributing on behalf of a GCC or Emirati employee results in legal repercussions and in paying retroactive and additional violation fines,” she added.
The General Pension and Social Security Authority (GPSSA) statement went on to explain that in order to secure adequate coverage for pension funds to meet their long-term effectiveness for retirees, it is of paramount importance that employers fulfill their obligation towards paying monthly contributions towards those covered by the provisions of the system.
GPSSA does not have access to certain employees working in the Gulf region due to the fact that their employers do not partake the required necessary process, and this is especially evident amongst free zone companies who revert to different labour laws.
“We make it a point to constantly meet and discuss the best strategies to undertake in order to address some of the challenges faced and continue to thrive towards increasing the level of cooperation and support we received from the different GCC countries which helps us share experiences and brainstorm ideas on how to further improve the operational services across the GCC region for pensioners and their beneficiaries, with an aim to provide a beneficial insurance protection service to all GCC citizens alike,” concluded Al Sahlawi.