Pension law assures security of Saudi women after retirement.Contemplating retirement? The Women's Section of the Public Pension Agency (PPA) held a meeting with current and future female retirees at King Abdulaziz University (KAU) titled: "Rights of Retired Female Employees". The meeting shed light on pension laws and procedures, documents submitted at end-of employee service to determine pension amount, the unified law to provide retirement pension to Gulf Cooperation Countries citizens and the PPA program to finance housing for governmental employees and retirees. Dr. Fawziyah Muhammad Al-Nwaiser, acting Dean of Community Service and Continuing Education, thanked Fatmah Al-Ali, Director of PPA Women's Section, for contributing to the meeting. The meeting discussed benefits of Saudi women retirees and their beneficiaries as granted by Civil Pension Law (CPL) which ensures equality in retirement pension between men and women. CPL was issued by Royal Decree number (M/14) dated 28/08/1973. Equal Rights The Saudi Civil Pension Law stipulates that all provisions equally apply to civil employees – male and female – employed according to public budget job specifications. The law allows a retired woman to receive a pension even if her husband still works or has retired. After Death The law stipulates that "If a retired female employee passes away, her beneficiaries shall receive her pension. Beneficiaries for her pension include: husband, mother, father, son, daughter, grandson, granddaughter (whose father passed away during the retiree's life), grandfather and grandmother." For beneficiaries to receive pension after the death of retired female employee, the law sets the condition that these beneficiaries should be totally dependent on the female retiree before her death. Sons and daughters are exempted from this condition. Full pension is paid if there are three beneficiaries or more while 75 percent is paid in the event of two beneficiaries and 50 percent in case of only one beneficiary. Pension is to be distributed equally among beneficiaries. The law protects the rights of a female beneficiary if pension is suspended due to her being employed or married. The pension will be paid again when she leaves her job or if her marital relationship ends. A woman may receive the pension herself or appoint whoever she sees fit to receive it on her behalf. For minor beneficiaries or those who do not have legal capacity, the legal guardian should receive the pension. Based on the above, retired female employees do not lose their right to pensions when they pass away, pensions will be paid to their beneficiaries. Pension calculation & eligibility A retired female employee becomes eligible for a pension when her service ends or is terminated. Retirement pension is calculated according to the following situations: First Scenario: When she reaches 60 years – the legal age of retirement – she is eligible for pension. Retirement pension will be determined as 40 percent of last salary for each year of service, as follows: last salary received x period of service in months ÷ 480 = eligible pension. Second Scenario: The retirement pension of a female employee who passed away or is dismissed due to incapacitation is 40 percent of last salary; or based on her actual service period, whichever is more beneficial to retiree. Third Scenario: When a female employee passes away or becomes disable during or because of work, she then becomes eligible for pension equivalent to 80 percent of last salary or based on actual service period, whichever is beneficial to the retiree. Fourth Scenario: When a female employee is dismissed for whatever reason and after serving for 25 years or more, she receives a pension determined according to First Scenario. Fifth Scenario: When a female employee is dismissed because her post is eliminated, or dismissed by a decision of the Council of Ministers or by a Royal Decree, but not for a disciplinary action, she deserves a retirement pension after a minimum of 15-year service. The pension will be determined according to First Scenario. If she has served for a lesser period, she deserves compensation equal to fourteen percent of her last monthly basic salary multiplied by the number of months she has served. Sixth Scenario: An employee with 20-year service, opting for early retirement and upon employer consent, is entitled to a retirement pension equivalent to the period of service and determined according to the First Scenario. One-time Payment The one-time payment is an amount of money paid once to an employee who resigned or is dismissed. The payment is calculated as follows: • Service for less than 10 years: last basic salary x 10 percent x service period in months = eligible payment. • Service for more than 10 years and not exceeding 25 years: last basic salary x 11 percent x service period in months = eligible payment. The one-time payment for a female employee who resigns after marriage should be equivalent to 11 percent of her salary even if she has not served for 10 years, provided that she has completed the trial period. A female employee dismissed because her husband was dismissed; and, while not serving a period to qualify her to receive a pension, deserves a one-time payment calculated as: last basic salary x 14 percent x service period in months = eligible payment. Pension should be calculated based on the actual service period which a female employee has completed while holding the same job as specified in public budget or budgets of various government agencies. Periods of employee secondment and school vacation without salary are calculated for pension as long as periods are in conformance with CPL. Women and Benefits Transferability Female employees should benefit from the Law on Benefits Transferability, enacted on 04/01/2004, just like their male counterparts. Women could work in public and private sectors. – SG (translated from the Retirees magazine) __
