Annuity (86)

Yes, the recipient of a pension can apply for transferring his entitlements from one bank to another for the subsequent months

The minimum limit of the monthly pension is no less than SR 1983.75

According to Paragraph (8) of Article (2) of the Social Insurance Law, the following are the family members entitled to pension:

1.Widow: The wife of the contributor until the date of his death.

2.Widower: The one whose contributing wife died and is suffering a loss of earning capacity until he is no more incapacitated. The widower is considered as disabled if he attains 60 and does not work.

3.Sons of the deceased contributor: The sons who are under 21 years of age until they complete such age. This age is extended to 26 years if they are continuing their studies in educational or vocational institution. No age limit is set so long as they are unable to engage in any occupation by reason of chronic disease or infirmity.

4.Daughters of the contributor until they marry.

5.The grandsons and granddaughters whose father died during the lifetime of the contributor and were supported by the contributor until the date of his death, subject to the same conditions as prescribed in respect of the sons and daughters.

6.The father of the contributor who was supported by the contributor himself at the time of his death, provided that the father is unable to work or over sixty years of age and not working.

7.The mother of the contributor who was supported by the contributor himself at the time of his death.

8.The grandfather of the contributor who was supported by the contributor himself at the time of his death, subject to the same conditions required in respect of the father.

9.The grandmother who was supported by the contributor himself at the time of his death.

10.The brothers and sisters, subject to the same conditions required in respect of the sons and daughters, provided that they were supported by the contributor at the time of his death.

The pensions should be entitled to with effect from the beginning of the month immediately following the date of application for payment

Under the Law, a contributor who returns to employment after receiving a lump sum compensation after 1/1/1422H may request adding his previous service to a new contribution period, provided that he returns the compensation in full within one year from the date of his return.

The Pension is the amount periodically paid under the Annuities Branch. The Benefit is the amount periodically paid under the Occupational Hazards Branch. The two terms have the same meaning

a.If the pensioner re-engages in employment which is not subject to the scheme, payment of his pension shall continue no matter how long that period goes. But if he returns to a work that is subject to the scheme, payment of his pension will discontinue for the duration of this employment, taking into account the following: 
1. If the pensioner returns to employment before attaining the age of sixty, his pension will be suspended for the duration of this employment. 
2. If his age at the date of returning to employment between the ages (60 and 65) the pensioner can choose between exemption from contribution for his new work or resumption of contribution in the scheme. In the case of choosing the exemption from contribution, payment of his pension will continue. If he chooses to continue payment of contribution, his pension will discontinue. In the latter case, if his wage is less than the average wage over the last two years or his last contributory wage on which the calculation of this average was based, the pensioner is paid an amount to raise his income to be equal to such average. 
3. If his age at the date of returning to employment is 65 years or over, his new work period will not be subjected to the Annuities Branch. His pension will not be suspended and will be subjected to the Occupational Hazards Branch.
b. If the pensioner leaves his new employment, his entitlements are settled based on one of two ways, whichever is greater: 
1.Re-calculating the pension following the aggregation of the new period to the previous one, on the basis of the average wage over the last two years of the last contribution period.
2.Or, setting the due amount of the new employment period on the basis of its average wages for the last two years, or the total contribution period. If this settlement is less than such average, settlement will be added to the first pension. The contributor will receive the total of these two pensions. 
3.If the new contribution period is ended due to non-occupational disability or death, the contributor or his family members will receive a pension in accordance with the previous calculation rules, or according to the method of calculating the non-occupational disability or death pension, whichever is greater

 Yes, the annual declaration can be sent by the regular mail but should be followed-up to ensure that GOSI office officials receive it.

a.The percentage of contributions to the Annuities Branch is 18% of the contributory wage, of which 9% is payable by the employer and 9% is payable by the contributor.

b.The percentage of voluntary contributions is 18% of the income category chosen by the contributor. This percentage is wholly payable by the contributor

The month in which the contributor left the employment is not considered as a contribution month unless it is a complete month. However, the incomplete month in which the worker leaves employment is reckoned as complete contribution month, if such reckoning enables the contributor to complete the period qualifying for pension, provided that such month is not taken into account in the computation of the pension. If, for example, a contributor has 119 contribution months and left the employment on 03/01/1422 H., the contribution period will be 120, but when calculating the pension it will be 119.

This provision is not applied to the contributor who applies for an early retirement pension.

According to the Law, any agreement or settlement that violates the Law is invalid; if these agreements affect the rights of beneficiaries or impose extra liabilities on the contributors or their families.

GOSI should notify the beneficiary of all the particulars related to the pension or compensation due to him, the amounts withheld, if any, the net amount due for payment, the agency through which payment will be made, and the conditions under which such payment should continue to be made

You should contact the Benefit Department at GOSI office or log on to GOSIONLINE to inquire about reasons for holding the pension. The reasons for holding the pension are as follows:
1. The annual declaration is not sent to GOSI office.
2. Three years elapse following the date of the power of attorney.
3.  A male family member exceeds the age of 21 and GOSI was not provided with a document proving the continuity of study

Yes, the Medical Board may subject the recipient of pension or benefit to a medical examination after he reaches age sixty in non-occupational disability cases, and after the lapse of five years from the allocation of benefit in occupational disability cases, in order to verify whether the beneficiary is still in need of assistance of others in performing his everyday life activities.

The allowance determined for this purpose becomes final by completion by the contributor of sixty five years of age for non-occupational disability and by the lapse of ten years from the date of allocation of benefit for occupational disability.

1.The missing contributor shall be treated the same as the deceased after the lapse of at least six months from his date of missing.

2. If it is established by GOSI through a decisive evidence that such missing has taken place during or by reason of the work and the missing contributor has been covered under the Occupational Hazards Branch, the entitlements of his family members will be determined in accordance with the provisions of the said Branch.

3. If the missing contributor is discovered to be alive, the amounts already paid by GOSI to discharge its obligation will be on credit in respect of the contributor and will be deducted from his entitlements.  If such amounts are in excess of his entitlements, the recovery of the balance will be disregarded.

The recipients of a pension and benefits formerly paid are treated as follows:

1.The old age pensions and the non-occupational disability pensions payable to the contributor under the old Law and continue to be payable on the effective date of the new Law were raised to SR 1983.75 if they are less than such amount. The allowance for the need for assistance of others payable to the recipients of non-occupational disability pension is 50% of the pension after it is raised to the minimum limit.

2.The pension shares of the family members payable under the old Law and continue to be payable on the date the new Law is put into effect will be revised by having their deceased breadwinner's pension amount raised to SR 1983.75, if it is less. If, after such raise, the share of any family member is less than SR 396.75 per month, it will be raised to that much, provided that the total amount of the shares of the family members does not exceed SR 1983.75 per month or the average wage taken as a basis for the computation of the breadwinner's pension, whichever is greater.

If the contributor was disabled before his registration, he can be covered under the Law but the non-occupational disability provisions will not be applied to him. Such contributor will be entitled to the pension payment if he attains the age of sixty, ceases the work covered under the Law and has a contribution period of no less than 120 months or 60 months in addition to a credit period completing the period of 120 months. The contributor's family members will be entitled to pension payment in the event of his death. However, if the appropriate Medical Board has discovered that the infirmity or disease has deteriorated after joining the employment which deterioration has resulted in an increase in the percentage of his incapacitation for work, the contributor can receive a non-occupational disability pension

In case the incapacitated son, brother or grandson is no more incapacitated, the benefit payable to him should be discontinued and his share should be distributed to the other eligible family members. If he is re-incapacitated, however, the suspended payment of his share should be returned to him.  In case such share has already been wholly or partially redistributed among certain eligible survivors, their shares should be reduced by the same amount.

Claims for transportation and lodging allowances and decedent's family grant are not accepted after the expiry of one year, and claims for the remaining benefits are not accepted after the expiry of five years from the date on which the entitlement to benefit arises, unless there is an excuse acceptable to GOSI, with due regard to the following rules:

1.The application for payment submitted by one of the beneficiaries will interrupt the prescribed period in respect of the remaining beneficiaries who have not applied for payment of their entitlements.

2. The application submitted for payment of any kind of benefits will be deemed an application for payment of the remaining benefits due. Likewise, the application submitted by a contributor for establishment of his non-occupational disability will be deemed an application for payment of entitlements due under the Law.

3. If the application for payment is submitted as provided for in the preceding two paragraphs with complete address and paying agencies shown therein, and such application is received within the time limit, the entitlement to pension will remain valid until the beneficiary receives his first pension from GOSI notwithstanding that the completion of documents and information may be delayed. However, in case of an application with incomplete documents and information, GOSI will endeavor to contact the beneficiary by using all available means of communication, including advertising in the information media and approaching the employer and the beneficiaries' relatives if known to GOSI, in which case the time limit will restart on and from the date of the first letter issued by GOSI for the completion of the required documents and information.

4. As for the regular pensions due after the payment of the first pension, the prescription provision will be applied to each such pensions, should the beneficiary fail to apply for payment thereof.

5. If the application for payment is submitted to GOSI after the lapse of the specified time limit and GOSI accepts the excuse for delay, GOSI will pay to the beneficiary his full entitlements due with effect from the date on which such entitlement arises. However, if GOSI refuses his excuse, it will pay the monthly pension with effect from the pensionable month in which the application is submitted in addition to the pensions payable for the past twelve months.

1. To accept his application for early retirement prior to reaching age sixty, the voluntarily contributor should produce to GOSI such documents as may prove the discontinuation of his activity or employment on which basis he has participated in the Scheme, such as cancellation of the commercial register or sale or liquidation of the establishment, provided that he has not been engaged in any of the activities or employments covered under the Law.

2. If a voluntarily contributor has received early retirement pension and has, subsequently, resumed any activity or employment that permits the contributor to qualify for voluntary or compulsory coverage before age sixty, his pension will be put on hold even if he has not requested to have a voluntary coverage, in which case the pension will remain on hold until the date on which he leaves such activity or employment or attains sixty years of age and continues to be unwilling to participate in the Scheme again, whichever of the two dates is earlier.

In case a non-occupational disabled pensioner returns to a new employment covered under the Scheme after receiving pension, he shall be presented to the competent medical board and if it finds that the state of the disability is over and the pensioner has recovered, the pension becomes suspended. If his new employment’s wage is less than the pension average wage or any higher income used in the calculation of such average, the pensioner receives a payment of the difference in the pension. If the pensioner leaves his new employment, the new period is aggregated to the old one on the basis of average wages of the last period, or receives a payment for only the last period. In this case, the pensioner receives a single pension representing a combination of the two pensions

If the applicant for payment is a guardian, custodian or an agent of the recipient of a pension or compensation or of his eligible family members, the applicant should attach to the application for payment:

a. A power of attorney issued by the appropriate authority or a power of attorney signed by two witnesses to be prepared by the proxy before the competent employee and approved by GOSI Office Director. The legal document issued by the appropriate authority should be accepted in respect of payment to a female eligible family member only; and the power of attorney for overseas pension payment should be accepted in respect of pensions payable to Saudis only. The power of attorney should be renewed every three years.

b. The decision appointing him as guardian, custodian or agent of an absentee, as applicable.

c. Bank account number to which the pension will be transferred by GOSI.

GOSI pays the retirement pension to the family of the contributor who is sentenced for a term of imprisonment no less than three months, though he may be under sixty years of age, so long as he has no less than 120 contribution months and the employer has notified GOSI of the termination of employment of the contributor.

The right to the retirement pension commences at the beginning of the month following the date on which the contributor was imprisoned, or at the beginning of the month following the termination of three-month period during which the contributor remained in prison.

The right to the pension expires at the end of the last day of the month in which the imprisoned contributor is released, with the next months added thereto.

The pension of the contributor's family members is paid to such person as may be designated by the contributor to receive the pension on behalf of the family members. If such designation is not made, GOSI may pay the pension to the person designated by his eligible family members. If they do not designate anyone, the pension is paid to the wife or otherwise to the eldest member.

The retirement pension payable to an imprisoned contributor becomes final, if such contributor attains sixty years of age in the course of his term of imprisonment.

The contributor afflicted with a non-occupational disability after leaving employment will receive a retirement pension if he has a contribution period of no less than 120 months or at least five years in addition to a credit period completing the period of 120 months. The pension amount will not be increased by 50% (the minimum amount of non-occupational disability pension), but the contributor will receive the minimum pension which SR 1983.75 if the pension is less than this amount

The contributor is entitled to a non-occupational disability pension if :

- the disability has occurred before the contributor attains the age of sixty and while the contributor is in employment covered under the Law

-the contributor has a contribution period of no less than 12 consecutive months or 18 non-consecutive months 

- the state of disability is established by the Medical Board within 18 months at the most from the date of termination of the contribution period

For the purposes of entitlement to benefits, the age is determined in accordance with the Hijrah calendar. However, if the date of birth is indicated in Gregorian, the corresponding date in Hijrah is taken. In case the day and month of birth are not specified, the date of birth is the first day of the seventh month of the Hijrah or Gregorian calendar year of birth, as applicable

Yes, the benefits can be combined within the following limits:

1.The contributor may combine both the benefit and pension within a limit not exceeding 100% whichever is greater between the following two amounts:

a.The average wage taken as a basis for the computation of the occupational disability benefit after it is raised by an assumed annual increment of 7% (seven percent) for each full year falling between the date of establishment of his disability and the date of his retirement provided that it should not exceed age sixty.

b.The average wage taken as basis for the computation of the pension.

2. The contributor or eligible survivors (as applicable) may combine the lump sum compensation payable under the Occupational Hazards Branch with the benefits payable under the Annuities Branch. They may also combine the refund of contributions payable under the Annuities Branch and the benefits due under the Occupational Hazards Branch.

3.The sons and daughters eligible for pension or benefit may combine their entitlement in respect of their father with their entitlement in respect of their mother.

4.The grandsons and granddaughters may combine their monthly benefit or pension payable in respect of the contributor with that payable in respect of their father or mother.

5. The widow may combine the benefit or pension payable in respect of herself with that payable in respect of her husband, and the same provision should be applied to the qualifying widower.

6.The family member who is eligible for pension may combine the monthly pensions with the benefits due to him if he is suffering an earning incapacity.

7.If a person qualifies for more than one pension or a pension and benefit, he will only be paid the higher between them. However, if the higher benefit or pension is less than SR 3,000, he will be paid from the amount of the other benefit or pension such portion as may make up his total amount to reach the said maximum.

8.The widow may combine her benefit or pension share payable in respect of her contributor husband with her work income.

9. If any of the eligible family members, save for the widow of the contributor, works for a wage equivalent to or exceeding his pension or benefit share, his pension or benefit payment will be suspended. Should the amount of pension or benefit exceed the amount of wage, the former will be reduced to match the latter. Nevertheless, he may combine the two within the limit of SR 3,000, and if the wage is less than the said maximum limit, he will be granted the balance to make up such maximum limit.

10.Each family member may combine more than one grant payable in respect of more than one contributor.

Originally, the entitlement is the contributor’s right or his family members. He is not allowed to waive his rights nor it is allowed to seize his dues, except in accordance with the provisions of the Labor and Workmen Law.

The contributor who has attained age sixty or over or the contributor who is afflicted with a non-occupational disability, if he fails to qualify for a retirement or disability pension, will be entitled to a lump sum compensation assessed at the rate of 10% of the average contributory wage taken as basis for the computation of the retirement pension, for each month of contribution in the first five years and at the rate of 12% for each month in excess thereof.

The lump sum compensation payable for the period of contribution completed before this Law is put into effect is computed at the rate of 6% of the said average wage for each month of his contribution in the first five years and at the rate of 7% for each month in excess thereof.

In the event of death of a contributor who failed to satisfy the conditions qualifying for survivors’ pension, his family members are entitled to the compensation amount computed in accordance with the provisions of the preceding paragraph, which compensation will wholly be divided among the family members who are eligible for pension in their respective proportions. Where only one eligible member is available, the total amount of compensation will be paid to him.

In the event of the death of a contributor after leaving an employment covered under the Law, his family members will be awarded the retirement pension which is paid with effect from the beginning of the month immediately following date of death, if he has completed 120 months of actual contribution or 60 months in addition to a credit period completing the period of 120 months. The contributor's family members will pay the total contributions to the Annuities Branch at the rate of 18% for each month of the credited period computed on the basis of the average monthly contributory wage taken as a basis for the computation of the pension. The contributor pays the said amount of contributions either in one payment or by deducting it from the accumulated pension due from the date of his retirement and paying the balance in monthly installments at the rate of 25% of the payable monthly pension until the whole due amount is settled.

For entitlement to a retirement pension, the compulsory contributor should cease to be engaged in any work subject to compulsory coverage and the voluntarily contributor should cease to be engaged in any work subject to voluntary or compulsory coverage

The contributor is entitled to the pension payment if he is no more engaged in any activity covered under the Law; has attained the age of sixty; and has a contribution period of no less than 120 months

The contributor whose period of contribution has been terminated prior to putting the new Law into effect and has not received the lawfully payable benefit for such period and is not qualified for pension under the old Law will be entitled to receive a pension subject to the following conditions and provisions:

1.The contributor, who has completed a contribution period of at least 120 months and has attained or exceeded age sixty before or after the Law is put into effect, is entitled to claim payment of a retirement pension.

2. The contributor who has completed a contribution period of at least 300 months before the Law is put into effect, may claim payment of early retirement pension.

3.The female contributor who has completed a contribution period of at least 120 months and has attained or exceeded age fifty five before or after the Law is put into effect may claim payment of retirement pension.

4.The contributor who is engaged in arduous and unhealthy works and has completed a contribution period of at least 120 months and has left employment before the Law is put into effect, may claim payment of retirement pensions.

5. If the contributor is sentenced for three or more months and has a contribution period of 120 months, his family members may receive the retirement pension notwithstanding that the term of sentence is issued before or after the effective date of the new Law.

6. The contributor who has attained age sixty or over before or after the Law is put into effect (01/01/1422 H.) and has a contribution period of 60 or more months but less than 120 months, (or his family members in the event of his death) may claim to have credit periods.

7. The contributor who is afflicted with a non-occupational disability or dies before or after the new Law is put into effect (01/01/1422 H.), or his family members, as applicable, will receive the respective pension payable under the old Law. However, in case of failure to satisfy the conditions qualifying for the said pension, he or they, as applicable, will be paid the pension payable to the contributor who is afflicted with a non-occupational disability or dies after leaving employment by inclusion of the credit period.

Under the Social Insurance Law, it is allowed for the contributor who attains the age of sixty and had at least 60 months of contribution, or his family members in case of his death, to apply for complementary period aggregation which will entitle the contributor or his family members to a pension up to a maximum of five years. The contributor or his family, in case of his death, shall pay the shares of the employer and the contributor i.e., 18%. The credited period is paid in full or by installments.

The pension amount should not exceed 100% of the average wage on which basis the pension was computed. The average wage during the last two years should not exceed 150% of the contributory wage received at the beginning of the last five years of the contribution period. This provision not applicable to the contributor whose pension was increased by 10% for the last five years of his contribution period.

Non-occupational disability pension and death pension are calculated with the same equation used to calculate the retirement pension, provided that the pension amount is not less than 50% of the average wage on which the pension was calculated. The contributor must be in employment at the time of disability or death.

The pension is calculated by the following:

a. The contribution period completed under the old Law "prior to 01/01/1422 H." (the average wage during the last two years of the whole contribution period × the former contribution period ÷ 600) is added to the dependants allowance (20% for three family members – 15% for two family members – 10% for one family member).

b. The contribution period completed under the new Law "after 01/01/1422 H." (the average wage during the last two years of the whole contribution period × the subsequent contribution period ÷ 480).

c. The outcome of the two paragraphs is the pension due to the contributor.