ABU DHABI // An FNC member has concerns about the time it took the Pensions Authority to respond to leaks and rumours about changes to the retirement law.
Hamad Al Rahoomi, of Dubai, raised three questions to the chief executive of the General Pension and Social Security Authority, Obaid Al Tayer, who is also Minister for Financial Affairs.
Mr Al Rahoomi questioned the delay in responding to leaks about pension laws, and said that by the time an official denial was made many people had already made life-changing decisions.
“The leaks were that there would be amendments to the pensions law, that they would be negative, and there were many other pieces of information like raising the retirement age to 65,” he said.
It took the authority more than four months to respond to the leaks and rumours.
“This is a very long time,” Mr Al Rahoomi said.
During those four months, many people made decisions to quit their jobs, he said.
“Where is the true news? It was not there and damage was done.”
Abu Dhabi Police provided a good example of how government bodies should respond to rumour, Mr Al Rahoomi said.
Three days after a rumour circulated about a decision to cancel the 50 per cent discount on traffic fines, it was denied, he said.
But in the case of the Pensions Authority, the absence of a response made people think the information was correct.
“They thought since it has not been denied definitely there was something. When you do not deny, you are adding credence to the rumour.
“Why no response? This affects tens of thousands of beneficiaries.”
Mr Al Rahoomi’s second question is about the late release of pension payments to retirees.
“One retires and then three months later the salary is issued, so during these three months how does one live?” he asked.
He mentioned the case of a woman who retired and sought for three months, in vain, to get her pension.
“Every time she asked they told her that her file was still being processed,” Mr Al Rahoomi said. “A week or two later and that was still going on.”
He said that situation was not good enough for a government authority, considering all its efforts to establish a comprehensive smart government system.
In the private sector, if a company delayed the payment of a worker’s wage for a month it could face closure under Labour Law.
“So imagine when it is a government body,” said Mr Al Rahoomi.
A solution must be found immediately, he said.
“If there is a problem in the system or shortage in staff, it should not be my concern as a retiree. Any excuse is unacceptable.”
The third question posed by Mr Al Rahoomi is on the Marriage Fund and why a salary certificate from the Pensions Authority is required as proof of employment.
“What if the person works as a fisherman, or a farmer or a businessman, and is not registered in the authority? Do they reject his application?”
He argued that the fund has its own system and therefore should not reject such cases.
A response from the ministers is expected during the FNC session tomorrow.
The council will also discuss the Federal Budget 2016 draft law.
hdajani@thenational.ae
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If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
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4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
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There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
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Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
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What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
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