The General Pensions and Social Security Authority has recently issued a circular directed at employers across both the public and private sectors.
This directive aims to provide clarity regarding the procedures for pension deductions or end-of-service gratuities in alignment with the stipulations outlined in Federal Decree Law No. 57 of 2023.
The circular sets forth explicit guidelines, emphasizing that deductions from pensions or end-of-service gratuities are exclusively permissible for the settlement of debts owed to the Authority.
Notably, it unequivocally prohibits any deductions for the satisfaction of other debts, irrespective of whether they are owed in the interest of the employer or pertain to alimony obligations. These regulations are intended to be universally applicable, encompassing all outstanding debts, whether they arose prior to the enactment of the decree or subsequent thereto, with effect from February 9, 2024.
According to the circular, the authority is mandated to transfer the entire pension or gratuity amount without any deductions, except for the settlement of its own debts. However, in cases involving alimony obligations, the concerned party retains the option to pursue seizure measures through the banks handling the funds transfer rather than through the authority directly.
Moreover, the circular delineates that the authority's debts shall be recovered from the end-of-service gratuity without any limitations. Additionally, it reserves the right to deduct any unlawfully disbursed amounts from the shares of other beneficiaries from the moment the incident comes to light. Each beneficiary retains the right to seek recourse against the individual who improperly appropriated these funds, proportionate to their entitlement.
Under the provisions articulated in the circular, amounts owed to the authority are subject to a lien against all debts. Consequently, the authority possesses the authority to pursue collection of these debts in accordance with the prevailing legislation governing such matters. These regulations extend to all civilians subject to the pension laws administered by the Authority, as well as employers subject to its regulatory framework.