Name of the Organization : Public Pension Agency
Type of Facility : Civil Pension Scheme
Location: Riyadh
Country: Saudi Arabia
Official Website : http://www.pension.gov.sa/sites/en/pensionscheme/Civil/Pages/default.aspx
Civil Pension Scheme:
The civil pension scheme defines the cases in which a civil employee is entitled to receive a retirement pension as follows:
** The employee referred to pension due to reaching the age of 60 years saving that the employee’s service shall not be less than one single year.
Related : Public Pension Agency Military Scheme Saudi Arabia : www.statusin.org/5299.html
** The employee deceased or dismissed due to definite disability to work irrespective of the employee’s service term.
** The employee whose service term of 25 years or more and ended for whatsoever reason.
** The employee whose service is ended due to position cancellation or dismissal under a cabinet resolution or a royal decree saving that the same is not due to disciplinary reason and saving that the employee’s service term is not less than 15 years.
** The employee who is referred to pension upon the employee’s request with a service calculated in pension not less than 20 years subject to the approval of the authority entitled to appoint the employee.
Pensionable Service:
Term of service calculated for the purpose of pension is the actual service term spent by the retiree on a rank in the budget of state or the budgets of public authorities. Terms of secondment and unpaid study leave shall be included in the terms calculated for the purpose of pension after fulfilling the statutory conditions stipulated in service systems and supplying the pension deductions due for the same.
Terms excluded from calculation for the purpose of pension:
** Absence terms without formal leave.
** Special leave and any other unpaid leaves except sick leave and study leave.
** Prevention term is the employee is resolved to be deprived of its salary for the same.
** Parts of months in the total service term.
** Service term stipulated by and regulation not to be calculated.
** Terms of holding the position or rank in violation of the provisions of regulations such as continuing civil service after reaching the age defined for retirement without extension as per the regulations.
Pension Settlement:
Pension is calculated on basis of one – fortieth of the last salary received by the retiree upon end of service as follows:
** Due retirement pension = (last fixed salary x service term in months) ÷ 480.
** Pension is settled in case of death or disability due to a reason other than work on basis of allocating a retirement pension representing 40 % of the last fixed salary the employee received unless the pension settlement as per the manner set forth in the above paragraph provides a higher pension.
** Pension is settled in case of death or disability during and because of work on basis of allocating a retirement pension representing 80 % of the last fixed salary unless the pension settlement as per the manner set forth in paragraph (1) provides a higher pension.
Pensioner’s Beneficiaries :
In case of the pensioner’s death, the pensioner’s beneficiaries shall be entitled to receive an equal pension to be distributed to them equally if they are three or more. If the pensioner’s beneficiaries are two, they are entitled to receive 75 % of the pension and if there is one beneficiary of the pensioner, such single beneficiary shall be entitled to receive 50 % of the pension.
1. Beneficiaries of the pensioner are: spouse, mother, father, son, daughter, grandson and granddaughter whose father died when the pensioner was alive, brother, sister, grandfather and grandmother. Except for spouse, son and daughter, the beneficiary person shall be dependent in terms of sustenance upon the pensioner upon the latter’s death.
2. The pension due to sons, grandsons and brothers, shall be stopped when they are twenty one. However, pension shall continue for entitled beneficiaries in the following cases:
** If the entitled beneficiary is a student in a secondary or high school or a recognized equivalent school provided that the student must be studying regularly. Accordingly, the pension shall be paid to such entitled beneficiary until the beneficiary is twenty six old or until the beneficiary’s graduation, whichever comes first.
** In case the beneficiary suffers a complete deficit preventing from earning living saving that the same shall be under a resolution made by the concerned medical authority until the beneficiary recovers.
3. As of the date of marriage contract, the pension of the wife, daughter and niece if they get married and the mother if gets married to other than the deceased’s father saving that the entitlement shall be returned to her if divorced or widowed. If the entitled wife was married at the time of the pensioner’s death, pension shall be redistributed supposing her entitlement at the time of death.
4. Pension shall be stopped being paid to the pensioner or to the entitled beneficiaries if appointed in public sector or if they were appointed in public sector at the time of the pensioner’s death saving that the employee’s salary shall be equivalent to the pension or exceeding the same. However, if such salary is less than the pension, the difference shall be paid to the entitled.
5. If the share of any beneficiary is nullified or stopped due to any reason, it shall not be paid to the other beneficiaries saving that the share of any remaining beneficiary in all cases shall not be less than (50 %) of the pensioner’s pension. If such share is less than the same, the remaining beneficiaries shall be paid to the extent of such percentage and to be distributed to them equally. However, in case the stopped share is to be paid again, pension shall be distributed to the entitled beneficiaries as if such share was never stopped.
Lump Sum Settlement:
If the employee’s terminated service for the purpose of pension without the availability of any of retirement pension entitlement, the employee shall be entitled to receive a lump sum remuneration:
** Service term less than (10) years: the last basic salary x 10 % x service term in months = the remuneration due for once.
** Service term of more than (10) years and less than 25 years:
** The last basic salary x 11 % x service term in months = the remuneration due for once.
** The remuneration of female employees resigned due to marriage shall be calculated on basis of 11 % irrespective of the service term subject to completing the probation term of one year unless she is entitled to receive pension as per the applicable regulations of scheme.
** Service term which is less than 15 years but ended due to job cancellation or dismissal under a resolution passed by the cabinet or under a royal decree without disciplinary reasons:
Last basic salary x 14 % x service term in months = remuneration due for once.