UNITED ARAB EMIRATES - Infrastructure developer Kharafi National has instituted a new retirement plan for employees that allows them access to a wide variety of global investment options and offers a company match.
According to RBC Corporate Employee & Executive Services (RBC cees), who helped set up the retirement scheme, "this milestone programme is one of the first such programs to be provided by a major private sector employer in the region". RBC cees will also act as administrator, trustee and fund adviser.
RBC cees Director of EMEA Julian Gardner said the level of coverage goes well beyond the pension benefit required by the government. In an e-mailed response to questions, he said: "Local labour requires that every employee shall receive a End of Service Gratuity "EOSG", which in general throughout the region is one months salary (based on final salary) for every year worked at the employer."
The new pension scheme will cover employees in Kuwait, the UAE, Lebanon and Egypt.
Kharafi National human resources director Antoine El Khoury said: "This reflects the high value that we ascribe to our staff and the importance we place on attracting, retaining and rewarding the best employees."
Gardner said: "We believe that demand for employee pensions schemes in the Middle East will continue to grow over the coming years. There are signs that companies are reviewing their human capital compensation and benefit strategies. We have also seen an increasing demand for deferred compensation structures and employee share save plans."
In November, RBC cees parent company Royal Bank of Canada hired Simon Stirzaker and Rola Azab to help grow its Middle East admin business from Dubai. (Global Pensions; November 3, 2009)
Trustees lack expertise, time and resources to develop effective communications on technical pensions issues and need professional help, a major review of the British Steel saga has concluded.
In this week's Pensions Buzz, we want to know if you think trustees should consult directly with members before agreeing to a DB superfund buyout.
Thousands of savers taking tax-free lump sums ahead of retirement are at risk of a pensions shortfall in later life due to neglecting their remaining pot, Zurich has warned.
Professional Pensions is looking to update its list of pensions master trusts in the UK ahead of authorisation. Can you help?