The Dubai International Financial Centre (DIFC) has rolled out its Employee Workplace Savings (Dews) scheme.
The move will see the centre shift from its current end-of-service gratuity offering, which is similar to a defined benefit system, to a defined contribution plan.
It is set to launch from January 2020.
Employers in the DIFC will have the ability to opt out of the Dews scheme in “limited circumstances”, provided that they have a qualifying alternative scheme certificate from the DIFC registrar of companies.
The guidelines as to what will qualify as a suitable alternative will be provided after 15 September 2019.
Providers
Global trust services provider Equiom has been selected to act as master trustee of the Dews plan, while Zurich Middle East has been selected as the scheme administrator.
Zurich will be assisted by Mercer as investment adviser, and Smart Pension as technology services provider.
The investment platform will receive and manage mandatory employer end-of-service contributions on behalf of employees and any added voluntary savings by employees, including cash or cash equivalent options.
Next step
There will be a Dews supervisory board; comprised of DIFC Authority representatives, employer and employee representatives, as well as independent members.
The role of the supervisory board will be to settle the Dews trust and the scheme rules with the chosen service providers, and then oversee the continuing governance and commercial aspects of the scheme that are not subject to regulatory supervision.
All regulatory aspects of the master trustee and scheme administrator’s duties will be overseen by the Dubai Financial Services Authority (DFSA).
Best practice
Arif Amiri, chief executive of the DIFC Authority, said: “The new Dews scheme will reinforce our position as a jurisdiction that attracts and retains the very best professional talent from across the globe in accordance with best practice, including employee benefits.
“It was critical for us that the partners selected to manage the Dews scheme demonstrated outstanding capabilities, a well-tested track record and alignment with international best practices.
“In line with the UAE’s National Agenda and Dubai Plan 2021, we are committed to creating a cohesive society and enhancing our business environment, as we deliver on our own 2024 growth strategy.”
