The introduction of the new Golden Pension Plan (GPP) by the Dubai administration will benefit more than nine thousand taxi drivers. According to this new plan, taxi drivers can save money and avail themselves of several benefits.
The pension plan was set up jointly by the National Bonds Corporation, Dubai Taxi Corporation (DTC), and Dubai Roads and Transport Authority (RTA). The inspiration behind the development of the pension plan was mainly to provide financial support for the employees as it provides an end-of-service benefit.
Golden Pension Plan (GPP) by the Dubai administration
This would also help strengthen their financial foundation and retirement planning as it will be provided to them together with the gratuity fund from the organization.
This will also provide a good opportunity for the registered corporates to get a head start in creating a proper financial upscaling for their employees and at the same achieving a highly competitive return from the National Bonds.
National Bonds Corporation (NBC) was set up in 2006 as a Shariah-compliant company that follows Islamic investment principles. It offers a range of savings and investment solutions that goes hand-in-hand with the UAE government’s aim to foster proper savings habits and financial literacy for the residents of the nation.
NBC has distributed around AED 2 billion in total to customers as profit payouts and prizes. Through the pension plan, taxi drivers can contribute monthly a minimum of up to Dh 100.
In order to activate the Golden Pension Plan, the companies have to first sign up under the GPP offered by National Bonds. Mohammed Qasim Al Ali, group chief executive officer at National Bonds said that the Golden Pension Plan is not a mandatory function like the Unemployment insurance scheme and all but this is a safety measure that the employees or the companies can choose to keep their savings safe for the future.
The employees have full freedom to not be part of the plan also. Even if the company is signed up, it can’t force an employee to be part of the plan if he or she doesn’t choose to. The monthly savings amount also has complete flexibility but the minimum amount set is Dh 100.
Qasim Al Ali observed that even though the National Bonds doesn’t force anyone to join the scheme, it is best advised to be part of the scheme and plan for a better future by saving a small amount that can yield higher profits in the future.
He said that there are around nine million people in the UAE and it will be a real achievement if the National Bonds can enable these residents to be part of this unique scheme that encourages saving practices as well as promotes businesses through a smart and innovative employee retention program.
The employees also have a chance to qualify for Dh 35 million worth of reward programs under the National Bonds. Under the reward programs, Dh 1 million is given to two winners each every three months, and also gifts and prizes worth Dh 423,000 is also distributed with special prizes for women, children, and regular savers.
Those employees who are registered under the Golden Pension Plan shall be eligible to be part of the rewards program.
According to the rules of the GPP scheme, an employee can withdraw the total savings amount and its benefits when they apply for the end-of-service benefits from their employer. There is an option to withdraw the partially invested amount during the employment period with the prior consent of the employer.
The plan also offers options to keep contributing to the scheme even after their retirement or resignation. The GPP program aligns itself with the larger vision of the UAE to make itself a global space for people to come and develop their careers as well as the economy.
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For this vision to materialize, the average employee should be in a position to yield maximum benefits and financial empowerment throughout his work life in the UAE. GPP focuses on fulfilling this aspect of the employee life where they can achieve financial empowerment through investing small amounts from their monthly salaries that will gradually add up to the accrued end-of-service benefits.
Mansoor Rahma Al Falasi, Chief executive officer of DTC expressed his optimism about the GPP scheme and said that they are proud to be the first company who has joined the Golden Pension Plan. He said that the Dubai Taxi Corporation aims to provide the best service for its employees and being a part of the pension plan enables the corporation to work towards the happiness of its members.
The GPP scheme is open to all the ex-pats and residents of the UAE who are working under a registered company.
The National Bonds also offers highly competitive profit rates compared to other savings schemes and also believes in complete transparency on profit calculations and holdings. For further details regarding the Golden Pension Plan and its benefits, you can visit the official website at www.nationalbonds.ae.