Friday, March 29, 2024 | Ramadan 18, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Exchange of insurance benefits between PASI and other pension funds

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Muscat: As part of its efforts, the Public Authority for Social Insurance (PASI) seeks to provide social protection and welfare to its beneficiaries through its strategic plans and to improve insurance benefits. It also provides social protection system that guarantees a decent life to all.


The system of mutual benefit insurance is one of the important systems that provide insurance protection for citizens when they move to work from the public sector to the private sector or vice versa. It allows the beneficiary to combine previous years of service in both sectors. This system contributed to the preservation of pension rights and provided more reassurance and stability for citizens when moving between sectors.


On the importance of this system, Radhiya al Mahrouqi, Director of Registration and Contributions, PASI says, “The benefit of this system is to guarantee stability and social protection of the individual and his/her family, which guarantees the right to post-service pension”.


According to her, the system also allows the exchange of experiences and knowledge in the various sectors of the Sultanate and is an effective step in the process of substitution for Omani competencies and expertise.


On the mechanism of operation of the system, Radhiya says, “there are certain requirements to combine the periods of service for the different sectors. The most important of these is that the periods are actual. This means that the insured has worked in a specific institution and 0o benefit has been paid for the periods in which he has worked and has not been entitled to any pension or remuneration”.


In the event of dismissal, the insured must apply for combining the service period within six months from the date of appointment, provided that he refunds the end of service benefits paid to him.


The Authority exchange the benefits (transfer of contributions collected) for the previous periods spent by the insured in the private sector with the civil servants’ pension fund and the pension fund of the Diwan of Royal Court and the Ministry of Defense pension fund through legal articles governing the transfer of contributions between the private and government sectors.


There are some funds that do not have an exchange of benefits with the Authority but it is trying to expand the benefit-sharing cycle by finding a number of projects that seek to implement in the near future.


In the case of transfer from the public sector to the private sector, the insured shall address the social insurance to combine the periods of service he has spent in that entity. In the case of transfer from the private sector to the government sector, the insured shall address the employer and then address the civil servants pension fund which will contact PASI to transfer the proceeds of contributions and thus combining the periods.


The same process applies for the Fund of the Ministry of Defense and the Diwan of Royal Court Fund. During 2018, 2000 cases were completed. The combining procedures take some time according to the required documents, the years of service, as well as following up with the collection of contributions, Radhiya explains.


The Authority seeks to improve and develop various aspects related to the insured and the business. In this context, the Authority is working on the project of purchasing the actual periods, which will allow the insured to buy the previous service terms.


This means the employee can be combined to the fund when paying for the periods he has worked previously in an institution that no mutual benefits insurance with the Authority. This resolution seeks to achieve stability and social protection. The Authority also works to connect with other institution electronically.


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