Article 3 of the Saudi Civil Retirement Law
المادة 3 من نظام التقاعد المدني
The Fund has an independent financial liability and is managed by the Retirement Pensions Agency, an independent agency linked administratively to the Ministry of Finance, which the Council of Ministers may entrust with implementing other retirement laws.
Official text (Arabic)
This article has not been amended since the law was issued.
للصندوق ذمة مالية مستقلة، وتديره - وفقًا لأحكام هذا النظام - مصلحة معاشات التقاعد وهي مصلحة مستقلة تمول من الصندوق وترتبط إداريًّا بوزارة المالية والاقتصاد الوطني، وسنتها المالية هي السنة المالية للدولة. ويجوز لمجلس الوزراء بقرار منه أن يعهد للمصلحة المذكورة تنفيذ أي نظام آخر للتقاعد.
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 3 explained in plain English
This Article lays down the organizational basis for managing civil retirement funds.
- Independent financial liability: The Civil Retirement Fund has an independent financial liability, meaning its funds are separate and have their own legal standing.
- The managing body: The Fund is managed, in accordance with the provisions of the Law, by the Retirement Pensions Agency, which is an independent agency financed by the Fund itself and linked administratively to the Ministry of Finance and National Economy.
- Fiscal year: The Agency's fiscal year is the State's fiscal year.
- Additional tasks: The Council of Ministers may, by its decision, entrust the Agency with implementing any other retirement law.
The Fund and the Agency here mean what Article 1 defined: "the Fund" is the Civil Retirement Fund, and "the Agency" is the Retirement Pensions Agency. Article 4 complements this provision by specifying the laws to which the Agency is subject and how it is headed.
The importance of the Article for employees and retirees is that it identifies the body through which retirement funds are managed and with which they deal on matters of their pension under the Law's provisions.
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 3 of the Saudi Civil Retirement Law
Does the Civil Retirement Fund have an independent financial liability?
Yes. The Article states expressly that the Fund has an independent financial liability.
Who manages the Civil Retirement Fund?
It is managed by the Retirement Pensions Agency, an independent agency financed by the Fund and linked administratively to the Ministry of Finance and National Economy.
Can the Agency implement another retirement law?
Yes. The Council of Ministers may, by its decision, entrust it with implementing any other retirement law.
More articles on Retirement Fund and Its Board
- Article 4
Except for managing the Fund's investments, the Agency is subject to the General Civil Service Law, the Hired Staff Law and the State's financial regulations, and is headed by a director general assisted by a deputy.
فيما عدا ما يتعلق بإدارة استثمار أموال الصندوق، تخضع مصلحة معاشات التقاعد لنظام الموظفين العام ونظام المستخدمين، والأنظمة المالية المعمول بها في الدولة ويكون لـ
- Article 5
The Article sets the composition of the Pension Fund's board of directors, chaired by the Minister of Finance, and the way it meets, its quorum and how its decisions are issued.
يؤلف مجلس الإدارة على الوجه التالي: - وزير المالية والاقتصاد الوطني ، أو من ينيبه. رئيساً - رئيس ديوان الموظفين العام . عضواً - محافظ مؤسسة النقد . عضواً - مدير
- Article 6
The Article gives the board of directors management of the Fund and supervision of the Agency, and lists its powers over implementing the Law, investment, the budget, auditing and the final account.
يتولى مجلس الإدارة إدارة الصندوق والإشراف على إدارة المصلحة، ويتولى في ذلك بصفة خاصة الصلاحيات الآتية: 1 - الإشراف على تنفيذ هذا النظام، وإصدار القواعد التنفيذي
- Article 7
The Agency's director general is responsible to the board of directors for the conduct of its work, and the board determines his powers in managing the Agency and investing the Fund's money.
يكون المدير العام للمصلحة مسئولًا أمام مجلس الإدارة عن سير العمل فيها، ويحدد مجلس الإدارة صلاحياته فيما يتعلق بإدارة المصلحة واستثمار أموال الصندوق.
- Article 8
The Fund's financial position must be reviewed every three years by an actuary or a specialized institution, and the board of directors submits the report to the Council of Ministers with its comments and proposals.
يفحص المركز المالي للصندوق مرة كل ثلاث سنوات من تاريخ العمل بهذا النظام بواسطة خبير كتواري أو مؤسسة متخصصة في هذا المجال، ويتناول الفحص تقدير التزامات الصندوق ا
- Article 9
The Article deals with how a deficit in the retirement fund is settled and allows new benefits to be added for beneficiaries when there is a surplus, both requiring Council of Ministers approval.
إذا تبين وجود عجز في الصندوق فتتم تسويته وفق الطريقة التي يحددها مجلس الإدارة ويوافق عليها مجلس الوزراء ، أما إذا تبين وجود فائض يسمح بإضافة مزايا جديدة للمنتفع
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.