Legislation Details
- Full Title: Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State
- Law Type: Cabinet Resolution
- Law Number: No. (46) of 2019
- Issued Date: 04 Jul 2019
- Effective Date: 15 Oct 2019
- Official Gazette: No. 658
- Sector: Family and Community
- Status: Active
- Number of Articles: 12
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes a system for the exchange of insurance benefits between retirement funds applicable in the United Arab Emirates. The purpose is to ensure continuity of pension and social security coverage for UAE citizens who transfer employment between government entities subject to different retirement systems. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 1-2) The Resolution is significant for businesses and individuals in the UAE, as it facilitates the portability of pension rights when employees move between government jobs. This promotes labor mobility and ensures workers can maintain their accrued retirement benefits despite changing employers. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 1-2)
What is the scope and purpose of this law?
The provisions of this Resolution apply to all retirement funds operating in the UAE, as well as UAE citizens who are transferred by competent authorities to work for employers subject to a different retirement system. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 2) The purpose is to establish a system for the exchange of insurance benefits between these different retirement funds when an employee is transferred, ensuring the continuity of their pension and social security coverage. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 1-2)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- The State: The United Arab Emirates
- System: The System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State
- Retirement Funds Applicable in the State: Any agency managing the application of pensions and retirement benefits laws of the UAE, either federal or local
- The insured: Any UAE citizen who is under any retirement system applicable in the UAE or any other retirement system formed in the future
- The transferring system: The retirement system the insured was subject to before their transfer
- The transferee system: The retirement system the insured is subject to after their transfer
- Competent Authority: The authority competent to transfer the insured subject to applicable legislations
(Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 1)
What are the main obligations and requirements?
The key obligations under this Resolution are: 1. The insured's subscription period in the transferring system shall be deemed continuous and complementary to the later subscription period of the transferee system. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 4) 2. The transfer cost the transferring fund shall pay to the transferee fund shall be calculated based on the insured's end of service gratuity or total amounts paid for the insured if they are not eligible for a pension or gratuity. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 4) 3. If the transfer is at the request of the entity where the insured is transferred, that entity shall pay any financial differences between the cost of joining the previous service and the transfer cost. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 4)
What licensing, registration, or approval requirements exist?
The legislation does not specify any licensing, registration, or approval requirements under this Resolution. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019)
What rights and protections does this law provide?
The key right provided under this Resolution is the continuity of pension and social security coverage for UAE citizens who are transferred between government entities subject to different retirement systems. Their prior service period is deemed continuous and complementary to the new system. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 4)
Which authorities or bodies are responsible for enforcement?
The Resolution does not explicitly establish any new authorities or bodies responsible for enforcement. It refers to "the competent authority" that issues the resolution to transfer the insured, but does not define which specific entity this refers to. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 3)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance with the provisions of this Cabinet Resolution. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019)
What fees, charges, or financial provisions are specified?
The Resolution outlines the following financial provisions: 1. The transfer cost the transferring fund shall pay to the transferee fund, calculated based on the insured's end of service gratuity or total amounts paid. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 4) 2. If the transfer is at the request of the entity where the insured is transferred, that entity shall pay any financial differences between the cost of joining the previous service and the transfer cost. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 4)
What exemptions or exceptions apply?
The Resolution exempts transfer cases that had been settled before the issuance of this system, subject to special memorandums of understanding. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 2)
How are disputes resolved under this law?
The legislation does not specify any dispute resolution mechanisms under this Cabinet Resolution. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019)
What are the key deadlines and time limits?
The Resolution requires retirement funds to complete the procedures of transfer and exchange of insurance benefits to the transferred insured persons within a period not exceeding six months from the transfer date or the date specified in the transfer resolution. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 5)
How does this law interact with other UAE legislation?
This Cabinet Resolution was issued pursuant to the following UAE laws: - Federal Law No. (7) of 1999 On Pension and Social Security and its amendments - Federal Decree by Law No. (5) of 2007 on Pensions and Benefits of Retirement of Employees of State Security Bureau - Federal Decree by Law No. (9) of 2007 on pensions and Benefits of Retirement of Employees at the Ministry of Defense and Armed Forces - Federal Decree by Law No. (2) of 2008 on Pensions and Benefits of Retirement of Employees of Ministry of Interior - Federal Decree by Law No. (9) of 2009 on pensions and Benefits of Retirement of the Supreme Council for National Security (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Preamble)
When did this law come into effect?
This Cabinet Resolution came into force three months after its date of publication in the Official Gazette, which was on 15 July 2019. Therefore, the effective date of this Resolution is 15 October 2019. (Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State, 2019, Art. 6)
Source Documents
This article analyses Cabinet Resolution Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.