Sharjah Ruler issues pensions and end-of-service law for military

The law's provisions are applicable to military personnel in regular service, with the Sharjah Social Security Fund tasked with overseeing their pension system and end-of-service benefits. This management is contingent upon government funding, in accordance with the law's guidelines.

According to the law, upon completing their service, a member is entitled to receive either a monthly pension that will be paid to them throughout their lifetime and subsequently passed on to their beneficiaries after their death, or a reward that can be given directly to them or their beneficiaries if it was not paid out during their lifetime, as stipulated by this law.

The law outlines certain requirements that individuals must meet in order to participate in the retirement pension and end-of-service benefits system established by its provisions:

1. Applicants must be at least 18 years old and not exceed 60 years of age.

2. They must also be deemed medically fit for work upon appointment, as confirmed by a medical report from an authority approved by the governing body.

The law outlines that membership subscriptions will encompass the following:

1. Monthly contributions made by the members, which will be deducted at a rate of 5% from the salary calculated for retirement pension purposes. This deduction will start from the date of appointment and will continue until the termination of service.

2.The amounts deducted in line with Clause (1) of this Article will be recorded in accounts designated for retirement or rewards for each regulatory body. All amounts owed in accordance with this law will be paid from the government’s general budget.

3. Additional fees may apply in cases of delayed payment of subscriptions.

Members may include previous service periods in the calculation of their current service period for pension or bonus purposes under the following conditions:

1. Service periods with the federal government or any public bodies, institutions, or companies in which the federal government holds a stake.

2. Service periods with local government departments within the emirates, or any public bodies, institutions, or companies that are funded in part by the emirate governments.

3. Service periods with federal or local military governmental bodies or any regular institutions within the country.

4. A nominal term of one year can be credited for each academic year completed by a graduate of the Sharjah Academy for Police Sciences.

5. Service periods accrued prior to acquiring the nationality of the country.

6. Previous service periods with any organization that has been approved by the Executive Council.

The law outlines the conditions required for members to include previous service periods, as detailed in Article (7):

1. Members wishing to include their prior service periods must fulfill the following criteria:

A. They must submit a written request to their governing body, expressing their desire to include these periods before their service concludes. This request should be accompanied by the necessary certificates and documents.

B. The service periods they wish to include should not have been terminated for any reasons that would disqualify the member from receiving a pension or reward.

C. Only service periods that are not temporary, daily, or training periods prior to official appointment are eligible for inclusion.

D. Members are required to pay the specified percentage of contributions stated in Article (5) at the time of their inclusion request, either as a lump sum or in monthly installments. The installments must be at least a quarter of the total salary, and the repayment period must not extend beyond the minimum threshold for pension eligibility.

E. The contribution percentage specified in Article (5) is based on the member's salary at the time the inclusion request is made.

2. In situations where a member’s service ends due to death or incapacity resulting from a work-related injury, the obligation to pay installments will be waived.

As per the law, any period of service completed before the enactment of this regulation will be counted for members who continue their roles in the regular bodies. This applies in line with the established system of exchanging recognized insurance benefits among pension funds operating within the state or any similar arrangement.

Participation in the retirement pension and end-of-service benefits system outlined in this law must adhere to the following guidelines:

1. The regulatory body is required to register its members with the Sharjah Social Security Fund within one month of their start date.

2. The regulatory body must submit cases of members' end-of-service to the Fund within one month of the administrative decision or the end of service date, whichever comes later.

3. The regulatory body will incur an additional charge of 25% of the monthly subscription for each appointment or end-of-service file that is not submitted to the Fund within the specified timeframes in points (1) and (2).

4. Subscriptions will be due from the first day of the month following the month they pertain to, and there is an option to extend this period until the fifteenth day of the same month. Please note that these subscriptions are non-refundable.

5. All amounts owed under this law will be paid from the government’s general budget.

The law provides that a member is entitled to a pension under the following circumstances:

1. If the member has completed a minimum of 20 full years of service for pension purposes.

2. If the member voluntarily resigns and receives approval from the regulatory body, provided their total service period is at least 25 full years.

3. If the member is retired due to disciplinary action, as long as their service period is at least 20 years.

4. If the member is retired through an Emiri decree or by a decision from the Executive Council, the pension will be calculated based on the greater of 15 years of service or the actual length of their subscription period.

5. If the member’s service terminates due to unfitness recommended by a medical committee stemming from a work-related injury, their pension will be calculated as if they had 25 years of service. If their actual service exceeds this, the pension will be based on that extended period.

6. Should the member die as a martyr, be declared a martyr, or pass away while in captivity, or if their service ends due to losing health fitness as a result of injury during security operations or captivity—based on a medical committee's decision—the pension will be calculated assuming a subscription period of 35 years, with the salary considered being no less than that of the rank immediately above their current position.

7. In cases of death or total disability resulting from a work injury, the pension will be calculated as if the member had 35 years of service.

8. Total disability or lack of health fitness not linked to a work injury will also be addressed. Evidence from the competent medical committee is required, and the pension will be calculated based either on a 20-year subscription period or the actual period served.

9. If service is terminated due to natural death, the pension will be computed as if the member had completed 35 years of service, following the provisions outlined in Emiri Decree No. 15 of 2023.

10. Provisions (5), (6), (7), and (9) are applicable to officer students at the Sharjah Police Sciences Academy should they become martyrs, die, or experience total disability during or as a result of their studies.

The law also specifies that certain periods shall be added to the actual service time when calculating pensions or bonuses, and the member will not be required to pay the monthly subscription percentage outlined in Article (5) of this law for these additional periods:

1. An extra period equal to the length of service lost due to deployments in security operations.

2. An additional period equivalent to the duration spent in captivity, provided that it is verified his status was legitimate according to the relevant regulations.

For the purposes of this law, a person who goes missing during security operations is recognized as a martyr, while someone who goes missing while on duty or as a result of their service is deemed deceased. The pension entitlements for those affected are determined as follows:

1. A temporary monthly pension, equivalent to what they would receive if declared a martyr or deceased during service, will be granted to eligible individuals for a duration not exceeding two years from the date of their disappearance. Once this two-year period has elapsed, the Sharjah Social Security Fund’s Board of Directors will issue a decision to establish the permanent pension for those entitled.

2. If it is later determined that the missing person is alive, the pension payments to their beneficiaries will be suspended, and an investigation will resolve the situation. Should the investigation reveal that the missing person’s status is questionable, the Fund, in collaboration with the Sharjah Finance Department, may seek repayment of any pension funds previously disbursed. Conversely, if the investigation indicates that their situation is legitimate, a reconciliation will occur between the missing person's entitlements and the benefits already paid to their beneficiaries. If the missing person's entitlements surpass what has been distributed, the difference will be paid out to them.

The law stipulates the calculation of retirement pensions as follows:

1. For members of the regular bodies, the retirement pension will be determined by adding the following components:

   A. A percentage equal to 70% of the member's basic salary for those who have completed 20 years of service. For each additional year of service beyond 20 years, this percentage will increase by 2%, capping at a maximum of 100% of the basic salary.

   B. A full 100% of the children's allowance.

   C. A percentage of 50% of the supplementary allowance for members with 20 years of service, increasing by 2% for each additional year beyond 20, with a maximum of 80% of the supplementary allowance, regardless of whether the total service period exceeds the maximum pensionable time.

2. If a member's service period surpasses 35 years, they will receive a bonus for the additional years worked, calculated as three months' salary for each additional year, based on their last basic salary.

3. If a member's service ends due to an Emiri decree or by a decision from the Executive Council as outlined in this law, the pension calculation will adhere to the provisions described, using 60% of the basic salary and 40% of the supplementary allowance.

4. In terms of calculating the service period, each month will count as one-twelfth of a year, and any fraction of a month will be treated as a complete month.

As per the law, a member's retirement pension cannot be less than seventeen thousand five hundred dirhams per month (17500).

The law also provides that in the event of a pensioner's death, their beneficiaries are entitled to receive portions of the pension as outlined in Table No. (1) attached to this legislation. This applies to both citizens and non-citizens who satisfy the eligibility requirements specified. The eligible beneficiaries include:

1. A widowed spouse or spouses.

2. Children.

3. Parents.

4. Siblings.

5. Grandchildren from the deceased son.

A pensioner becomes entitled to their pension starting from the day after their service ends. This entitlement continues until their death, unless there are designated beneficiaries. In that case, the pension rights are passed on to the beneficiaries as outlined by the law. The beneficiaries will start receiving the pension from the first of the month following the pensioner’s death.

Considering the eligibility criteria set forth in this law, the right to a pension will be passed on after the pensioner's death to the individuals listed in Table No. (1) attached to this legislation.

According to the law, if the pensioner is an officer, the beneficiary's share must be at least AED2,000 per month. In contrast, if the pensioner is a non-commissioned officer or a private, the minimum amount is AED1,500 per month. However, it's important to note that the total payments made to the beneficiaries cannot exceed the amount the pensioner received.

The law states that if a wife passes away, either during her husband's lifetime or after his death, her share of the pension will be divided equally among her sons and daughters who are entitled to it. If none of the children are present, her share will then be distributed equally among the widows of the pensioner who are available at the time of her death. Should there be no one from either group, her share will be transferred to the government.

If the widow decides to remarry, her portion of the pension shifts from her deceased husband to his sons and daughters, who will share it equally among themselves. If there are no children, her share will be passed on to the government.

Under the law, a widow, daughter, or sister loses her pension if she gets married or starts working. However, if she stops working or finds herself divorced or widowed again, and doesn't have another source of income or pension, her benefits can be reinstated. In instances where one family member experiences a cut, the amount deducted from their pension will be redistributed among the remaining family members. If the circumstances that led to the cut change, the pensions of those affected will be adjusted downward to account for any amounts reallocated to others.

If a daughter, sister, or mother is widowed or divorced, and if the son or brother is no longer able to earn a living after the pensioner's death, they are each entitled to the pension that was due on the date of the pensioner's passing, provided they do not have another salary or pension. This entitlement should not impact the rights of the remaining beneficiaries of the pension. If the pension is terminated or suspended for any of them, it will not be redistributed to others.

The law states that if a father passes away while his sons or daughters are still alive and they do not receive a pension from him, his share of the pension will be passed on to them, provided he was alive at the time. Conversely, if the father dies after his children have become eligible to receive a pension from him, then his share of that pension will also be transferred to them.

In the two situations referenced earlier in this article, the rules concerning the termination of pension benefits for the recipients, whether they are sons or daughters, will be applicable.

The son’s pension will be discontinued either when he starts working or reaches the age of twenty-one, depending on which milestone comes first. However, in certain circumstances, the pension may continue to be paid beyond this age:

1. If the son is unable to earn a living due to a proven disability, as verified by a report from the competent medical committee. This proof must be reassessed every two years, unless the committee determines that recovery is unlikely.

2. If he is pursuing his studies, the pension will keep being paid until he either secures a job or reaches the age of twenty-eight, whichever occurs first. If he turns twenty-eight during the academic year, the pension will continue until the end of that academic year.

3. For those who hold a university degree or an equivalent qualification, the pension will remain in effect until he starts working or reaches the age of twenty-eight, whichever comes first.

4. If he has a final qualification below a university degree or its equivalent, the pension will last until he either finds employment or reaches the age of twenty-six, again based on whichever comes first. His educational progress will be checked every two years.

According to the law, a father has the right to receive a portion of his deceased son's pension if he was financially dependent on him during his lifetime. This dependency must be validated by a certificate issued by the relevant authority in the state, following the guidelines established by the pension fund.

A mother is entitled to a share of her deceased son's pension if she is a widow or divorced, or if her husband depended on her son’s support during his lifetime and she herself does not have a salary or pension. This is established according to the rules set forth by the Fund. However, if she is married to someone other than the deceased’s father, she is not eligible for the pension. In cases where she is divorced or her husband passes away, the pension will revert to her.

Brothers and sisters are eligible to receive a portion of the deceased’s pension if they relied on him for their livelihood during his lifetime. This dependency must be verified by a certificate from the relevant authority in accordance with the regulations established by the Fund. The eligibility will also be subject to the same guidelines and limitations outlined in Articles (22) and (23) of this Law.

The law further states that if a pension is entirely or partially terminated for any of the pensioner's children for any reason, the affected portion will be redistributed among the remaining children according to the shares outlined in Table No. (1) attached to this law. Should the reason for the termination be resolved, the pensions of these children will be adjusted downward by the amount that was allocated to them due to the termination.

In cases where there are no other beneficiaries, the unpaid portion of the children's pension will be allocated to the pensioner’s widow. However, her share must not exceed three-quarters of the total pension. If there are multiple widows, the entire pension will be divided equally among them.

In the clause of controls for combining a pension with more than one, or a pension and a salary, the law stipulates that a pensioner may not combine two pensions from the same entity. If he is entitled to two pensions, the larger of the two shall be paid to him. He may also not combine the pension with any salary he receives periodically from any other entity in the emirate.

As an exception to the rules against combining two pensions from the same entity or merging a pension with a salary from another entity, the following cases allow for such combinations:

1. If a pensioner has completed 25 years or more of service for which they are entitled to a pension, they may combine this pension with any salary they receive from any entity in the state, on a consistent basis, regardless of the total amount.

2. If the pension is granted to the widow of a pensioner, she is entitled to combine her salary from her work or another pension with the pension she receives for her late husband.

3. If the pension is for a martyr or a missing person due to security operations, the combination is allowed without any limit on the amounts.

4. If the sum of two pensions or the combination of a pension and salary received by the pensioner or their beneficiary does not exceed AED30,000 per month, they may keep the full amount. However, if the total exceeds this limit, their entitlement will be restricted to the maximum allowable amount.

According to the law, a member is entitled to an end-of-service gratuity if they do not qualify for a pension upon completing their service, in line with prior provisions and the stipulations outlined in this law.

The end-of-service gratuity is calculated as follows:

1. For the first five years of service, the member receives two months’ salary for each year.

2. For the subsequent five years of service, they receive three months’ salary for each year.

3. For every year beyond that, they receive four months’ salary for each additional year.

A member is not eligible for an end-of-service gratuity if their tenure with the Authority lasts less than one year. In such cases, any amounts deducted for pension or gratuity will be refunded. The gratuity calculation is based on the last basic monthly salary the member received at the end of their service, along with the children’s allowance. When determining the length of service, any part of a month will be counted as a full month.

According to the law, if a member passes away after their service has ended and is eligible for an end-of-service gratuity that was never received during their lifetime for any reason, this gratuity must be distributed to the rightful heirs in line with the regulations set forth in this law regarding pensions, as outlined in Table No. (1) attached to the law. In cases where no beneficiaries are identified, the gratuity will be allocated according to the rules of inheritance established in Islamic law.

The law governs the forfeiture or suspension of pension or bonus rights in the following manner:

1. A member cannot be deprived of their pension or bonus unless through a disciplinary decision.

2. Amounts owed to the pensioner or their beneficiaries cannot be deducted or seized under this law, except for court-ordered alimony payments or amounts required by the government related to work performance. Additionally, any recovery of funds disbursed without justification may also be deducted. In these situations, the deduction must not exceed one-quarter of the pension, and should a conflict arise, priority will be given to alimony obligations.

In terms of pension or bonus deprivation, and as an exception to the provisions outlined in Article (35) of this law, a member may lose their full pension or bonus in the following scenarios:

1. If their nationality is revoked or withdrawn by the state.

2. Upon receiving a final judgment that finds them guilty of a crime threatening national security, either domestically or internationally, or of a terrorism-related offense.

3. If they are convicted through a final judgment for crimes such as embezzlement, theft of public funds, bribery, or trafficking in narcotic or psychotropic substances.

4. If it is proven that they violated a decision resulting in their absence from service for more than 90 days.

5. If they are convicted of engaging with or working for a foreign country without the required permission from the relevant authorities.

6. If they are dismissed from their service.

7. If they are stripped of their rank and subsequently dismissed from service.

If a member is deprived of their full pension or bonus for any of the reasons mentioned earlier, their beneficiaries will receive their full shares upon the member's death. This is except for cases where the member has lost or withdrawn their nationality; in such situations, the beneficiaries will only receive their full shares if they themselves have retained the country’s nationality. Conversely, if the beneficiaries have lost their nationality or never held it to begin with, they will only be entitled to half of their shares.

According to the law, if a pensioner loses their pension, their beneficiaries are entitled to receive the full amount of the pension that was due at the time of the pensioner's death, in line with the provisions of this law.

Additionally, the law states that if the pension or end-of-service gratuity is not claimed by its owner or beneficiaries, any request for such claims will be rejected after five years from the date the entitlement arose or from the date of the last pension payment. However, this five-year limitation does not apply if there is a legitimate barrier preventing the beneficiary from asserting their right, provided that this obstacle is acknowledged by the Director General of the Fund. Any unclaimed amounts that exceed this period will revert to the government.

The law outlines the criteria for exceptional pensions and bonuses as follows:

1. Exceptional pensions and bonuses may be awarded to pensioners, their beneficiaries, or other citizens by a decision made by the Ruler or the Executive Council, even if they are not covered by the provisions of this law.

2. The provisions of this law shall apply to the exceptional pensions and bonuses referred to in Clause (1), without affecting any specific terms set by the Ruler or the Executive Council.

According to the law, if a pensioner is reinstated to their position within the regulatory authority, their prior period of service can be combined with their new service. When this new service period ends, the pensioner will be treated as if they have served for both durations, as long as the Fund issues guidelines on how to calculate the costs associated with adding this prior period.

Additionally, the law states that in the event of the pensioner's death, a sum equivalent to the pension owed for the month of death, along with the following three months, will be paid in a lump sum to the individuals the pensioner was supporting at the time of their passing. This payment is treated as a grant that cannot be reclaimed or seized to settle any outstanding debts, and it is also exempt from any taxes or fees.

Compensation is determined as follows:

1. In the unfortunate event of a member being martyred, their heirs are entitled to a compensation of (250,000) two hundred and fifty thousand dirhams. If the member dies due to a work-related injury, the compensation is (200,000) two hundred thousand dirhams. Meanwhile, if the death occurs while on duty but not as a direct result of it, the compensation amounts to (100,000) one hundred thousand dirhams.

In all circumstances, the compensation is fully disbursed to the heirs of the deceased pensioner, in accordance with Islamic inheritance laws.

2. A member is eligible for death benefits if they sustain total disability from participating in security operations or from a work injury. For those with partial disabilities, the compensation is calculated based on the percentage of disability in relation to the death benefits applicable in each situation.

3. The extent of the disability will be assessed by a final medical decision from the medical committee once the condition has stabilized. This assessment is guided by Table No. (2) attached to this law, which outlines the degrees of disability for various organ losses. If a specific disability isn't detailed in this table, its percentage will be estimated based on the individual's reduced earning capacity, as documented in the medical committee's decision.

The decision regarding the deprivation of compensation is outlined as follows:

A member shall lose the compensation specified in Article (42) of this law under the following circumstances:

1. If it is confirmed, through a ruling from the relevant authorities, that the individual intentionally inflicted harm upon themselves.

2. If the injury results from a willful and inappropriate act committed by the injured person, as established by a judicial decision or a ruling from the Police Judicial Council. The following actions will be classified as such:

   A. Any conduct engaged in by the injured person while under the influence of alcohol, narcotics, or psychotropic substances.

   B. Any deliberate breach of public safety or personal safety regulations that are clearly stated and visible in the workplace.

The resolution outlined the consequences of a member’s injury as follows:

1. If a member is injured while engaged in security operations, their pension will be increased by fifty percent (50%) of the disability percentage determined in Table No. (2) attached to this law, based on the salary used for pension calculations.

2. In cases where a member suffers a work-related injury that renders them unfit for service and leads to retirement, their pension will also see a fifty percent (50%) increase based on the disability percentage outlined in Table No. (2) and calculated against their last basic salary before retirement. However, if the injury occurred during service but not directly due to work, the increase will be capped at twenty-five percent (25%).

3. It is important to note that the pension increases mentioned in Clauses (1) and (2) will cease upon the death of the injured member.

The member is entitled to retirement compensation as follows:

1. The pensioner will receive a monthly retirement compensation in addition to the pension owed to him, which will be equal to the difference between his last monthly salary—this includes allowances and bonuses, but excludes the position allowance—before retiring, and the pension he is entitled to. This compensation will be provided for a duration of two years from the retirement date. If the pensioner passes away before this period concludes, the compensation will be paid to his beneficiaries until the end of that two-year term, distributed according to their pension entitlements.

2. The retirement compensation outlined in Clause (1) shall not be awarded if the member’s service is terminated upon their request or if the retirement is a result of a disciplinary action.

Additionally, if the pension is suspended or cut off, the pension due for the month in which the suspension or cut-off occurs will still be paid in full. Should the pension be reinstated for the original beneficiary or transferred to other beneficiaries, it will be restored starting from the beginning of the month following the date eligibility is reinstated.

The recent decision clarified the responsibilities of the Fund as follows:

1. The Fund is tasked with managing the files and systems associated with retirement pensions and end-of-service benefits for its members. It is important to highlight that the government will provide the funding necessary for these pensions, benefits, and compensations, as stipulated by this law.

2. Additionally, the government will cover any extraordinary amounts determined by the Ruler or the Executive Council. These will be managed according to the procedures outlined in a decision made by the Council.

The decision stipulated that the regulatory body must keep books and records of pensioners and submit to the fund the statements, data, notifications and forms required for the implementation of this law, in accordance with the terms, conditions and deadlines specified by the fund.

The decision stipulates that the regulatory authority will create a dedicated retirement file for each pensioner, where all relevant documents issued by the Fund will be kept. This file will be organized in the following manner:

1. Should there be a reason to stop or reduce a pension, beneficiaries are required to inform the Fund from the date the change takes effect.

2. The Fund retains the right to recover any amounts mistakenly disbursed to a beneficiary whose pension has been halted or reduced. This will be done by deducting those amounts from what remains payable to the other beneficiaries, each based on their respective share.

This provision does not affect the other beneficiaries’ rights to seek reimbursement from the individual responsible for the erroneous disbursement, according to their share.

Moreover, the decision clarifies that retirement pensions, compensations, and bonuses issued under this law will be exempt from all local taxes and fees.

According to the ruling, any amounts owed to the government under this law will take precedence over all of the debtor’s funds and will be prioritized over other debts, after judicial expenses and alimony obligations. The Fund is entitled to collect these amounts through the relevant government collection procedures, and payments may be made in full or in installments, based on conditions set by the Fund.

The decision addressed the penalties as follows:

1. Without prejudice to any penalty stipulated in any applicable legislation, anyone who violates the provisions of this law shall be punished by imprisonment and a fine not exceeding (5,000) five thousand dirhams, or by either of these two penalties, anyone who intentionally:

A. Provides incorrect information or intentionally refrains from providing the information stipulated in this law, or in the decisions or regulations implementing it, with the intent to obtain funds from the fund without justification.

B. Provides incorrect information for failure to pay the fund’s dues in full.

2. In all cases, the court shall rule to return the amounts disbursed without justification or to recover the amounts due to the fund.

3. All fines and amounts imposed for violating the provisions of this law shall accrue to the government.

Under the terms of the decision, the Fund has the option to settle amicably with those who violate this law. This can happen as long as the offenders agree to pay the required fines and return any amounts that were wrongfully issued to them. The timeframes outlined in this law will be calculated using the Gregorian calendar.

According to the decision, all existing systems, regulations, and executive actions currently in place within the regulatory bodies will remain effective until they are modified or revoked in line with this law or any decisions made under it. The Executive Council will issue the necessary decisions and executive instructions to implement the provisions of this law, based on the Fund's recommendations and in coordination with the regulatory bodies.

This law will take effect from the date of its issuance, and the relevant authorities are responsible for its implementation, each within their respective scope of authority. It will also be published in the Official Gazette.