ABU DHABI // Annual pension increases may soon be aligned with inflation, the Minister of State for Financial Affairs told the Federal National Council on Tuesday.
Obaid Al Tayer, also deputy head of the General Authority for Pensions and Social Insurance, said he and a number of government officials were studying the possibility of linking the two to help Emiratis keep up with the rising cost of living.
But Dr Abdullah Al Shamsi (Ajman) said this was not enough, and that a solution was needed for workers who retired before 2008 and were receiving lower pensions.
“These people worked hard for their country,” Dr Al Shamsi said.
Mr Al Tayer told the council the authority had nothing to do with existing payments as they were mandated by laws.
“The increase does not come from the authority, it comes from the Government,” he said. “The authority has nothing to do with increases because these increases must come with a set budget.
“The question has nothing to do with the authority.”
A frustrated Dr Al Shamsi said Mr Al Tayer’s answers gave the impression that they were living on “different worlds”.
“We summoned the minister because he is a main member in the [pension authority],” he said. “The agony these retirees are in is huge.
“I have a lot of things I would like to say, but since he said he has nothing to do with it – and other things that I don’t like – then...”
He reminded the minister that the constitution called for equality among all citizens, which would mean they could not differentiate between one retiree and another.
“If he is not the one responsible, then who is?” Dr Al Shamsi asked. “Should I ask Sheikh Mohammed bin Rashid [Prime Minister and Ruler of Dubai] to come talk about this? You are the one responsible, my brother.”
He said a retiree had once called him to say he was on charity benefits because his pension was not enough to meet his needs.
“Dubai emirate was first to equalise pensions, what about the federal Government?” asked Dr Al Shamsi. “Right now there is a case in the courts from military retirees to get their equality as stated in the constitution. The case is filed against the Government.”
Mr Al Tayer said his ministry’s actions were mandated by law.
“With all due respect to the member’s opinion, there is no clause in the law to allow us to increase pensions. These clauses are clear,” he said.
Dr Al Shamsi then said it would have been better not to have summoned the minister in the first place, claiming the least he could have done was take a stand and sympathise with the retirees.
“All council members, please go on social media and tell Emiratis we are standing by them in this,” he said.
osalem@thenational.ae
