Dubai Pension Fund Law

Dubai ruler and vice president Sheikh Mohammed bin Rashid Al Maktoum issued a new law related to Dubai’s Local Military Pensions and Social Security Fund. After the announcement of the voluntary pension savings plan for private-sector employees, this is another big announcement related to pension funds. The new law no. (7) of 2022 is expected to support Dubai’s vision of ensuring the best international practices related to the betterment of army personnel. The legislation can also improve UAE’s savings market by giving it a boost.

What to expect?

The fund seeks to improve the service quality to the pension beneficiaries. Along with this, the law will also ensure that the rights and insurance requirements of contributors, pensioners, and their beneficiaries are met in the fund.

The law annuls Executive Council Resolution No. 25 of 2006, which used to regulate the creation of the Local Military Pensions and Social Security Division. According to this latest law, the Director-General of the Department of Finance (DoF) will oversee the technical, administrative, and financial affairs of the fund. Furthermore, the Chairman of Dubai’s Executive Council will make a decision to appoint an Executive Director to the Fund. Additionally, once the law takes effect, all liabilities and assets of the DoF’s Local Military Pensions and Social Security Division will be transferred to the Fund.

Till the issuance of law no (7) pf 2022, the DoF used to take the responsibility of implementing and monitoring military personnel’s social security processes, whether they are on duty or have previously retired, in the departments listed in Resolution No. (3) of 2008, namely:

  • Dubai Police General Headquarters
  • General Directorate of Residency & Foreigners Affairs
  • General Directorate of Civil Defense

Effective Date of New Law

Law No. (7) of 2022 is effective from the date of issuance.

Who are the beneficiaries of military pension apart from the officials?

Father: If the father was dependent on his deceased son, does not work for any private or public organization, and is not receiving any other pension.

Mother: If she is married to a dependent father, is a widow and not remarried, or is divorced and remarried.

Widow: The widow of the deceased military professional who has not remarried or does not work in any government or private entity or receive a pension from any such entity.

Widower: He is unable to earn due to medical conditions. The person needs to undergo a medical examination every two years by the medical committee. The committee can also certify the person medically unfit permanently.

Male Children: If the male child is registered in school or university and obtains an unemployment certificate or is unable to earn and certified by a medical committee.

Female Children: If the girl child is below 18 years of age, registered in a school or university, unmarried, or does not work for any private or public entity.

The Military Pension Fund in the Other Emirates

In November 2020, the Military Pension Services Sector was transferred from the Abu Dhabi Department of Finance to the Abu Dhabi Pension Fund. The department is responsible for managing the military pension sector’s services in the Emirate of Abu Dhabi, which provides to military pensioners and eligible beneficiaries. The fund also manages the civil retirement pensions in the Emirate.

The local military pension and social security fund will make all services available to military retirees and the entitled beneficiaries of deceased military pensioners through various channels.

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