General Pension and Social Security Authority issues clarifications to dispel common UAE pension misconceptions

The General Pension and Social Security Authority (GPSSA) published guidance addressing five common misconceptions that it says can lead insured members and retirees to make decisions that undermine post‑retirement financial stability. The statement focuses on clarifying rights and obligations under UAE pension law and the services available to contributors, pensioners and beneficiaries. GPSSA clarified that a woman’s pension does not cease on death and, like a man’s, can transfer to eligible dependents, but beneficiaries cannot combine two GPSSA pensions and may only receive the higher one. It also stated pensions are not treated as shariʿa inheritance and are distributed under eligibility rules in Federal Law No. 7 of 1999, including age and status conditions for children, with a daughter’s entitlement equal to a son’s. The authority said members cannot freely choose between a pension and an end‑of‑service gratuity because entitlements depend on service length (and sometimes age), and that individuals generally receive either a pension or a gratuity, with both payable only when service exceeds 35 years, in which case an additional gratuity equals three months of pensionable salary for each year beyond 35. Finally, GPSSA highlighted that pensions are calculated from the salary base used for contributions and service‑linked percentages, giving the example that 15 years of service entitles a member to 60% of the average contributory salary, plus 2% for each additional year beyond 15.