Article 2 of the Saudi Benefit Exchange Law
المادة 2 من نظام تبادل المنافع بين نظامي التقاعد المدني والعسكري ونظام التأمينات الإجتماعية
The article gives a participant subject to the last system the right to ask to add his earlier participation period in the first system, even if both periods ended before the law took effect, protecting his acquired rights.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يجوز للمشترك الخاضع للنظام الأخير وله مدة اشتراك سابقة عومل خلالها بالنظام الأول أن يطلب ضم تلك المدة إلى مدة اشتراكه في النظام الأخير.
2- إذا عاد المشترك مرة أخرى إلى عمل خاضع للنظام الأول بعد انتهاء عمله الخاضع للنظام الأخير، فإن النظام الذي عاد للعمل في ظله من جديد يعد نظاماً أخيراً أيضاً في مجال تطبيق هذا النظام بالنسبة للمدة الأخيرة.
3- للمشترك الحق في طلب الضم طبقاً لأحكام الفقرتين السابقتين ولو كانت مدة اشتراكه في ظل النظامين قد انتهت قبل نفاذ هذا النظام، إذا توافرت لديه الشروط المنصوص عليها في المادة الثالثة من هذا النظام.
4- لا يخل هذا النظام بالحقوق التي اكتسبها المشترك (الذي اختار الضم) في النظام الأول في حال عدم استحقاقه معاشاً وفقاً للنظام الأخير.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 2 explained in plain English
This article is the core of the Benefit Exchange Law, as it establishes the participant's right to aggregate participation periods between the retirement systems (civil or military) and the social insurance system.
1. The basic right: a participant subject to the last system, if he has an earlier participation period during which he was treated under the first system, may ask to add that period to his participation period in the last system. Aggregation is an option for the participant and is not mandatory.
2. Returning to the first system: if the participant returns to work subject to the first system after his work subject to the last system ends, the system to which he returned is also considered a last system with respect to the final period.
3. Periods that ended before the law took effect: the participant has the right to ask for aggregation even if his participation period under the two systems ended before this law took effect, provided that he meets the conditions in Article 3, including that he has not received an award or pension for the period to be added, that his participation period in the first system is not less than one year, that his age does not exceed 59 when he asks for aggregation, and that he expresses his wish for aggregation before his service in the last system ends.
4. Protecting acquired rights: the law does not prejudice the rights acquired in the first system by a participant who chose aggregation, if he is not entitled to a pension under the last system.
Someone considering aggregation is best advised to consult a lawyer who specializes in retirement and social insurance laws, or to contact the competent body to learn the effect of aggregation on his case.
Practical example
Saad worked for 8 years as a government employee subject to the Civil Retirement Law, then moved to a company in Al Khobar subject to the Social Insurance Law. Under the article, he may ask to add the eight years to his participation period in social insurance, once the conditions of Article 3 are met, such as that he has not received an award for that period.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 2 of the Saudi Benefit Exchange Law
Can I add my government service to social insurance?
Yes. A participant subject to the last system may ask to add his earlier participation period in the first system, once the conditions of Article 3 are met.
Am I entitled to aggregation if my service ended before the law was issued?
Yes. The participant has the right to ask for aggregation even if his participation period under the two systems ended before the law took effect, if he meets the conditions of Article 3.
What happens if I return to government work after the private sector?
The system in which you returned to work is also considered a last system with respect to the final period.
Articles this article refers to
More articles on Combining Service Periods Between Retirement and Insurance
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.