Article 8 of the Saudi Civil Retirement Law
المادة 8 من نظام التقاعد المدني
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 القائمة والمستقبلة ومدى توازن المنافع الممنوحة للمستفيدين من الصندوق مع إمكانياته، كما يشمل الفحص تقدير الواردات والمصروفات في الفترة التالية لإعداد تقرير الفحص التي يحددها مجلس الإدارة، ويتولى مجلس الإدارة دراسة التقرير ثم يرفعه لمجلس الوزراء مشفوعًا بملاحظاته واقتراحاته.
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 8 explained in plain English
This Article sets up a periodic mechanism to confirm the soundness of the retirement fund's financial position and its ability to meet its obligations.
- Timing: The Fund's financial position is reviewed once every three years from the date the Law is put into effect.
- Who carries out the review: an actuary or an institution specialized in this field.
- Content of the review: estimating the Fund's existing and future obligations, whether the benefits granted to the Fund's beneficiaries are balanced against its capacity, and estimating revenues and expenditures in the period following preparation of the report, a period the board of directors determines.
- After the review: The board of directors studies the report and then submits it to the Council of Ministers together with its comments and proposals.
This Article is linked to Article 9, which deals with the result of the review: if a deficit appears in the Fund, it is settled in the manner the board of directors determines and the Council of Ministers approves, and if a surplus appears that allows new benefits to be added for beneficiaries, this may be decided on the recommendation of the board of directors and the approval of the Council of Ministers.
So the actuarial review is what any change in the Fund's financial position under the Law is based on.
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 8 of the Saudi Civil Retirement Law
How often is the pension fund's financial position reviewed?
Once every three years from the date the Law is put into effect.
Who carries out the actuarial review?
An actuary or an institution specialized in this field.
What happens to the review report?
The board of directors studies it and then submits it to the Council of Ministers together with its comments and proposals.
More articles on Retirement Fund and Its Board
- Article 3
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.
للصندوق ذمة مالية مستقلة، وتديره - وفقًا لأحكام هذا النظام - مصلحة معاشات التقاعد وهي مصلحة مستقلة تمول من الصندوق وترتبط إداريًّا بوزارة المالية والاقتصاد الوط
- 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 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.