The changes to Civil Service Pension system are improvements with benefits.
At a recent press conference held by the Civil Service Employees Pension Fund discussions surrounding the Council’s latest changes to the rules were had. It was announced that these changes will result in pension benefit improvements and more entitlements for civil servants.
The press conference was held in an attempt to clear up the confusion surrounding the changes to the present pension system.
Director General for the Fund, Ahmed bin Said al Muhrizi noted his assurance that the new regulations are designed for the benefit of the employees. The financial support for employees beyond retirement is the key goal of the changes. Government is striving to enhance the economic and social welfare of its citizens, stated al Muhrizi.
The minimum years of service required for pension eligibility when an employee retires before the age of 50 has been raised to 20 years, up from 15. If the employee retires beyond 50 years of age, the minimum years of service has been increased to 15, up from 10. These changes are intended to motivate employees to remain in their positions for an extended period of time, contributing to the national welfare overall.
Most agree that these pension changes issued by the Council are targeted at the long-term prosperity of Oman while also taking into account the pension schemes of Omani employees to ensure a better future. This system is also encouraging workers to stay in the services that will benefit them.
There are also advantages being added for the employees, such as a tacking on 75 percent of housing, water and electricity allowances to a pensioner’s basic salary. The employee contribution to the system from their basic salary has been increased to 8 percent up from 6 percent. Before these changes the government was putting 15.4 percent of an employee’s basic salary into the pension, with the employee putting in 6 percent.
Now with these changes, the employee will be contributing 8 percent with the government contributing 16.7 percent.
This rise, along with the 75 percent water, electricity and housing allowances, are compulsory measures of savings aimed at enhancing the overall quality of life for civil servants beyond their retirement.
Al Muhrizi stated that as of 2010 salaries totaling RO 7,800 million are paid out monthly to the 35,000 retired civil service workers in Oman.
In an effort to offer the comforts these honourable employees have earned there have been several different Civil Service Employees Pension Fund departments established in wilayats and regions of Oman.Paul Holdsworth, Staff Writer, Gulf Jobs Market News