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Ministerial Order No. (1) 2002
Concerning Commuting Old Age Pension
And the Amount to be Returned in the Case of Surrendering the Commutation
The
Minister of Labour and Social Affairs,
Having
reviewed the Social Insurance Law No. 24/1976 and its amendments,
in particular Articles 144, 145, 146 and 147,
And
the Order of the Minister of Health No. (16) 1986 concerning Medical
Examination on Commutation's Applicant,
And
the Proposal of the Board of Directors of the General Organization
for Social Insurance at its meeting No. (6) held on 15 October 2001,
And
upon the submission of the Director General of the General Organization
for Social Insurance,
Hereby
Orders:
Article
1
The
General Organisation for Social Insurance may, upon the request
of old age pensioners, commute part of their pension into a lump
sum determined in accordance with the schedule (6) annexed to the
Social Insurance Law, and under the conditions and manners specified
in this order.
Article
2
Subject
to the provisions of this order, the pension is commuted up to 25%
of its value excluding the allowances mentioned in the Prime Ministerial
Edict No. (12/1979). The pensioner may not be allowed to commute
for the second time before the expiry of two years from the date
of the last installment paid in respect of the previous commutation.
Furthermore the dinar's fractions may not be commuted.
Article3
Employment
accident and disability pensions may not be commuted, also the dependants
have no right to commute their pensions.
Article
4
The
applicants should sign and submit the Form No. (1) annexed to this
order, upon which the General Organisation for Social Insurance
shall record those applications into a special register which should
contains the following details:
1-
Date of receiving the request.
2- Registration number and its date.
3- Applicant's name.
4- Applicant's social insurance number.
5- Applicant's personal number.
6- Applicant's pension number.
7- Acquired pension.
8- The fraction wanted to be commuted.
9- The installments period.
10- Number of the previous commutation.
11- Applicant's address.
Article
5
The
General Organization for Social Insurance shall send the applicant
along with the Form No. (2) attached herewith, to the Medical Committee
for the medical examination and to assess his medical condition
in accordance with the Order of the Minister of Health No. 16/1986
concerning medical examination on commutation applicants; the Committee
shall return the form to the General Organisation for Social Insurance
containing the result of the examination, and the applicant bears
all costs towards the Medical Committee.
Article
6
The
process of commutation will be continued only if the medical examination
certifies that the medical condition of the applicant is good or
satisfied, and in the latter case the committee shall add a number
of years to the applicant's age. The adjusted age will be the basis
of considering the capital of commuted pension in accordance with
schedule No. (6) annexed to the Social Insurance Law.
The
result of the medical examination will remain valid for one year
starting from the date of the committee decision.
If
the medical examination reports that the applicant's condition is
not satisfied, the commutation process will not be continued; the
second examination will not be allowed before the expiry of one
year from the date of the first medical examination.
Article
7
The
commutation will not be allowed if it appears that the pension is
subject to deductions equal to 25% for a debt due to the General
Organisation for Social Insurance or for others; if the level of
deduction falls below 25% then the commutation may be made within
the difference between 25% and the level of such deduction.
Article
8
In
the case of rejecting any application due to reasons mentioned articles
(6) and (7) above, the General Organisation for Social Insurance
shall notify the applicant of the reasons behind this decision on
the Form No. (3) attached to this Order.
Article
9
The
commuted capital is determined in accordance with the schedule (6)
attached to the Social Insurance Law, and on the basis of the applicant's
age at the time of carrying the medical examination, taking into
account the number of years added by the Medical Committee previously
mentioned in the first paragraph of article (6) of this Order.
Article
10
The
applicant is to be notified, by a registered letter, of the acquired
capital that he is entitled to, and shall declare on the Form No.
(4) before the authorized clerk the acceptance of the offer. If
the applicant failed to come forward within two months from the
date of being notified or reject to sign the Form No. (4), it will
be regarded as waiving the claim and all the process shall be ceased;
however the Director General may disregard the two months period
if the applicant justified such a delay.
Article
11
The
commuted capital will be paid by cheque; or it will be credited
into the applicant's appointed account.
Article
12
The
General Organisation for Social Insurance shall deduct the monthly
installments from the pension until all installments are fully paid,
the deduction shall start from the following month of the month
during which the commuted capital payment was made.
If
the deduction is not possible due to suspending the whole pension
or part of it for any reason, the commuter is obliged to pay the
remaining installments on due date.
Article
13
The
commuter may at any time surrender the commutation using the Form
No. (5) attached to this order; in return the commuter shall repay
the current value of all the remaining installments in accordance
with the schedule attached to this order, in such a case the installment
deduction shall be ceased once all the installments are fully paid.
Article
14
In
the case of commuter's death, all remaining installments shall be
dropped off; payment due to the dependants shall be settled as if
the pensioner had not commuted any part of the pension.
Article
15
The
Director General of the General Organisation for Social Insurance
shall implement this order.
Article
16
This
order shall be published in the Official Gazette and shall come
into effect from 1st March 2002.
Abdulnabi
Abdulla Al-Sho'ala
Minister for Labour and Social Affair
Chairman of the Board of Directors of the
General Organisation for Social Insurance
Issued
on:
30 January 2002
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