Dubai Sheikh Mohammed bin Rashid Al Maktoum's ruler passed a new pension fund law. This has been a massive announcement from the leader himself as it reflects and supports Dubai’s long-term vision of ensuring the best and international standardized practices for officials served in government offices and the military. The new law No. 7 of 2022 will also improve the saving market in the United Arab Emirates as it will give a massive boost to the sector.

The government of the UAE has been providing financial incentives to several people following into different announced categories for being eligible for pensions and gratuities. Earlier, according to the UAE Federal Law No. 7 of 1999, Pension and Social Security funds cover all the residents of the UAE. This singularly includes those who are UAE's national, including men and women. Moreover, to better explain it, the pension facilities largely cover Emirati employers, citizens of GCC countries, Emiratis who are self-employed, and all nationals entitled to receive pensions.

Moreover, Expats have also been entitled to receive pensions as more than 85% of the people living in Dubai are expats. This doesn’t entitle all the expats who weren’t entitled to the benefits. But for those individuals who are retirement leverages upon signing their contracts in the UAE.

Expectations Regarding the Pension Law in the UAE

The new Law and amendments introduced in regards to the pension law in the UAE largely cover the funds that cover the pension beneficiaries and will improve the overall process. In the light of the newly introduced Law, it has been clear that the rights, benefits, and insurance necessities of the pensioners, contributors, and their beneficiaries will be met in time and that too without any delay and unfaithful commitment.

The earlier resolution no. 25 of 2006 that specifically explained and targeted the local military pension and social security division has been annulled. The new Law commanded the Director-General of the UAE’s Department of Finance to supervise all the operations and functions of the department in regard to the pension fund law. The supervision covers the financial matters, administrative measures, and technical expertise required at times to resolute the problems to facilitate the pensioners and beneficiaries.

What’s more, the legal advisor in Dubai also sheds light on how an Executive Direction of the Pension Funds will be made in time and who will be in charge of all the assets and liabilities of the Department of Finance’s local military pensions and social security division. All the regulated bodies will function under one to bring unanimity and transparency at all times.
So, according to the new and amended Law, the responsibility of the implementation of the new Law regarding the pension funds will be monitored by the Department of Finance.

Details about Beneficiaries

Here are the details about the beneficiaries of all the people legally identified to receive pensions on behalf of their deceased;

• The first is father and mother of a deceased son who does not receive any other pension will be entitled as a beneficiary.
• If the woman is a widow and divorced from a deceased individual, she will be categorized as the recipient of the pension.
• The next is the widow of any deceased military professional who does not receive any other pension will be able to receive a pension from the newly amended Law.
• The children of a deceased individual who are underage or those with some disability or who cannot earn for themselves due to medical uncertainty will be considered liable to receive a pension from the UAE pension funds.

Government Declaration

The new Law replaced the earlier gratuity and savings fund scheme by January 2020 as the new Law aims to bring significant changes with more focus on providing convenience and ease to people receiving pensions and their beneficiaries. Separation of saving scheme has been made from the pension fund so that no problems come in between.

The Final Takeaway

Considering other Emirates of the UAE, the Abu Dhabi Department of Finance has also seen a change in the Pension Fund. The Abu Dhabi Pension Fund Department manages the military pension sector. Moreover, this department is also responsible for managing the people's civil retirement pension fund plans in the United Arab Emirates. In a nutshell, the new amendment has created incredible ease and convenience for people to provide relief and collection better possibly.