Savings scheme

DIFC discusses savings plan for government employees

The Dubai International Financial Center (DIFC) has held several virtual town hall meetings with senior executives from various government entities to discuss the detailed implementation of the “Dubai Government Employees Savings Scheme” for the expatriate plan from July 1.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, approved the launch of the program in March 2022 with the aim of attracting and retaining talent by providing an integrated system that offers various opportunities for employee savings. to ensure their present and their future.

The scheme conceptualized after the DIFC Employee Workplace Savings (DEWS) scheme, targets expatriates in Dubai government entities initially, with the possibility of expanding its implementation in later stages.

The virtual meetings brought together executives, human resources managers and employees of government entities that will begin implementing the new program. Participants learned about the benefits of the scheme, how to join and types of financial contributions, as well as the procedures followed at all levels, which include employee, employer and the scheme’s supervisory board.

Alya Hussain AlZarouni, Executive Vice President – Operations, DIFC Authority, said, “The expansion of the DIFC Employee Workplace Savings (DEWS) scheme across all government entities in Dubai supports the emirate’s vision to be a hub for talent. This comprehensive savings plan is used for retirement planning and aligns with global best practices. The approach is a first for the region and over time we expect other cities and countries to adopt a similar approach in the years to come. Together with industry leaders such as Equiom, Zurich and Mercer, we will continue to deliver a best-in-class offering, reforming the landscape of workplace savings. »

Mohammad AlHawi, Director of Policy and Strategy-Economic Development at the General Secretariat of the Executive Council of Dubai, pointed out that the savings program is seen as an important addition to the government of Dubai and will play a key role in strengthening economic stability. and social benefits that the government offers to its employees.

He added: “The program will contribute to strengthening Dubai’s position as a global financial centre, recognized as an incubator of expertise and skills from around the world, in line with international best practice. It is in the interest of the workforce and its development within an integrated system that enhances the attractiveness and flexibility of the labor market in the emirate.

When DEWS was launched in February 2020, it was the first scheme of its kind in the region and reformed the end-of-service benefit scheme for people working at DIFC, aligning with international standards retirement savings. Since then, the program has gone from strength to strength, both in size and performance, despite the outbreak of Covid-19 almost immediately after the program was introduced.

A global provider of professional services, Equiom will act as the primary trustee of the plan and independent legal owner of contributions made by employers, while ensuring that its beneficial interest accrues to employees. Zurich Workplace Solutions will support employers and employees through the administration and management of the plan. As an investment services provider, Mercer will provide independent and proven investment advice to the primary trustee of the plan.

With its market-leading approach to long-term workplace savings in the region, DEWS offers a progressive severance plan, having restructured the predefined benefits plan into a funded and managed by professionals.

The plan also offers employees the opportunity to save more through voluntary savings. Additionally, DEWS allows participants to choose a plan commensurate with the type of risk they are willing to take, allowing employees to plan for their financial future, especially retirement. – TradeArabia Press Service

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