The UAE announced a pension scheme earlier this week aimed at expatriates, who make up 89% of the country's population. Employees of registered corporates will be able to plan for retirement with the Golden Pension Plan (GPP).
As part of their end-of-service benefits, companies can contribute either a lump sum or a monthly contribution from or on behalf of their employees. Contributions will be placed in GPP according to the agreed terms and features. Where applicable, expected profit or rewards prizes will be given to the company or its employees as the company chooses. In order to manage the fund, National Bonds will invest in low- to medium-risk sharia-compliant asset classes.
Sukuks (savings bonds) will be issued under employee accounts with National Bonds according to the allocation of funds provided by the company. Sukuk issued under the product can only be redeemed if the company requests it.
The employee will have visibility of the invested amount, but winnings and profits will only be redeemed upon request from the company.
It is possible for employers to redeem part of the gratuity back to their employees with their prior approval.
Expats working for companies that have signed up with National Bonds can participate.
Every month, they can save as little as Dh100 and earn a profit on the amount they save. The cumulative amount saved can be credited in addition to the earned gratuity provided by their organization.
In the UAE, every company is mandated to provide gratuity to their employees.
By enrolling in the plan, they will be funding it, which gives the employee more security. Through the return on investment, they will be able to boost the gratuity amount by a significant amount.
National Bonds offer highly competitive returns on investments in the region and beyond.
Profits generated from the GPP will be paid quarterly to the investors and the dates for the allocation and disbursement of those profits will be determined based on the date the company receives the first investment.
The redemption control of the GPP lies with the company.
Every quarter, Dh1 million will be awarded to a lucky employee
The National Bonds offer a rewards program worth Dh35 million. Every three months, the program offers a grand prize of Dh1 million to two lucky winners. Each year, it also offers over Dh423,000 in prizes, with prizes dedicated to ladies, minors, and regular savers.
With the GPP program, registered employees are eligible for all the rewards with no minimum balance requirement and twice the chances per Sukuk. Continuing to save multiplies the chances four times.
GPP allows companies to provide financial care and benefits to their employees in a convenient and simplistic way.
It is relevant to note that employees of corporates registered with National Bonds are not eligible to join the Global Pension Plan. However, staff of other firms can apply to become members of the Global Savings Club. Employees are encouraged to build their own emergency funds through voluntary monthly bank deductions as part of the plan. The club has managed to attract a sizeable contribution from these employees who opted to build their own safety net on top of their gratuity entitlements.
The new scheme will help corporates manage employee pension plans and help them kick off their retirement savings. The scheme is designed to help expats who retire and change their jobs in the UAE. The Golden pension scheme was launched by the Central Bank of the UAE. This is great news for the ex-ats in the UAE because this pension scheme will be a great benefit for the expat.
This scheme will be applicable to the residents of the UAE who were working in the UAE for five years prior to their retirement. The scheme will provide benefits to expats who have worked in the UAE for more than five years. The expat pension scheme will be applicable to ex-pats without any conditions. The scheme will be a great benefit for the expat.
The scheme, which is targeted at 89 percent of the UAE's population who are ex-pats, will help employees of registered corporates get a tax-free retirement pension at the age of 50. This new scheme will help expats settle in the UAE.