laws

Abu Dhabi Decision No. 5/2023, effective from 01/12/2023, approves the controls and conditions for purchasing notional service for pension entitlement or pension increase. This decision is based on Abu Dhabi Law No. 18/2023, which amends some provisions of Abu Dhabi Law No. 2/2000 regarding Civil Retirement Pensions and Benefits in the Emirate of Abu Dhabi. The decision provides detailed guidelines for individuals who wish to purchase notional service to complete the qualifying period for retirement pension entitlement. If an individual has not completed the required 15-year qualifying period, they can purchase notional service as long as their service period is at least 5 years. The cost of the purchase is 26% of the salary at the time of application, and it must be paid in one payment. However, it is possible to request payment in installments from the retirement pension. For early retirement, individuals must have a service period of at least 20 years and meet the minimum qualifying age for retirement pension entitlement. In this case, the purchase of notional service must complete the minimum 25-year qualifying participation period. The cost remains the same, 26% of the salary at the time of application, and it must be paid in one payment before the retirement pension is disbursed. The decision also allows individuals who do not meet the age requirement or the period and age requirement for retirement pension entitlement to purchase notional service. In this scenario, the service period must be at least 20 years, and the age of the applicant must not be more than 5 years below the qualifying age for early retirement entitlement. The cost is 26% of the salary at the time of application, and all financial obligations resulting from the age difference must be settled in full. Furthermore, the decision permits the purchase of a retirement pension increase. The value of the retirement pension after purchase must not exceed the maximum prescribed salary. The cost of the increase must be settled in one payment before the retirement pension is disbursed. It is important to note that any previous decision conflicting with Abu Dhabi Decision No. 5/2023 is abrogated. The decision was published in the Official Gazette, Issue No. 12.