A new 'Tax' or a good deal?

[Jet II]

Expat pension plan under study (http://archive.gulfnews.com/articles/08/03/27/10200746.html).


I cant decide whether this would be a good thing or not - probably due to the complete lack of detail but I have a suspicion that it is for the benefit of the Government rather than the Expat.

I am not at all convinced that I want to give up my defined end-of-service benefit for a UAE 'Pension' that I cannot see how it would work.

How and when would this 'pension' be paid? - would it be just a lump sum at the end of the contract or would you have to wait until retired before claiming?

If it turns out to be just another tax then it will be a major disincentive to those coming and to those already here.

[411A]

SaudiArabian had somewhat similar, years ago.
The American expats input was zero, IE: all contributions paid by the company.
For Europeans/TCN's, the expat input was half, matched by the company.
After ten years, fully vested.
Upon retirement, between half and three-quarters of the highest salary paid during work was paid as a retirement benefit, for life, on a monthly basis.
By royal decree, this program was abolished in 1984, and all contributions returned to the expat.
Thereafter, quite a large outflux of expats followed, which allowed more junior Commanders to move up the seniority list very rapidly and allowed maximum overtime payments to be collected, until the replacement Commanders could be recruited.