Public Pension Agency (PPA) 2026: Entitlement, Calculation, and Post-Merger Status

The Public Pension Agency (PPA) was one of Saudi Arabia's oldest insurance institutions. Established in 1957 to manage civil and military government employees' pensions, it stayed independent until it merged with the General Organization for Social Insurance (GOSI) in 2017 as part of major reforms unifying the insurance system. Despite the merger, its rules still govern many entitlements.

When was PPA independent? Who did it cover?

| Pre-2017 | Government civil employee | Covered by PPA | | Pre-2017 | Military (Defence, Guard, Interior) | Covered by PPA | | Pre-2017 | Private-sector employee | Covered by GOSI | | Post-2017 | All above | Under unified GOSI |

Key difference pre-merger: government pensions were higher and faster than private-sector equivalents, because PPA rules were more generous.

PPA rules before the merger

Entitlement

• Age 60 as statutory retirement age.
• 25 years of service without age requirement = full pension without reduction.
• 20 years of service = early retirement with a small reduction.
• Full disability: disability pension anytime.

Calculation method

Original formula:

Monthly pension = average salary in last 2 years × service years × 2.5%

Simple example:

• Average salary: 12,000 SAR.
• Years of service: 30.
• Pre-2017 pension: 12,000 × 30 × 2.5% = 9,000 SAR monthly.

Ceiling: 100% of average salary (i.e., after 40 years, pension = salary).

What changed after the 2017 merger?

For new employees post-2017

• Direct GOSI registration as if in the private sector.
• GOSI rules only.
• After the 2024 reform: new-system rules apply.

For old employees pre-2017

Composite calculation:

• Years before 2017: computed with PPA rules (more generous).
• Years after 2017: computed with GOSI rules.
• Final pension: sum of both.

Example:

• Joined government in 2000.
• Retired in 2025 (25 years of service total).
• 17 years under PPA (2000-2017).
• 8 years under GOSI (2017-2025).
• Pension computed in two parts and summed.

Military sector — still distinctive

Military personnel in Defence, National Guard, and Interior have relatively special rules even after the merger:

• 20 years of service = early retirement.
• High rank = higher pension (based on rank at retirement).
• Injury on duty = special pension.
• Military is not subject to civil retirement age.

Survivors' pension (family after death)

An entitlement in the PPA/GOSI system that many overlook:

Who are the beneficiaries?

| Beneficiary | Conditions | |---|---| | Widow | Hasn't remarried | | Sons | Under 21, or older if students or with disabilities | | Daughters | Until marriage, no age limit | | Parents | If economically dependent on the deceased | | Unmarried sisters | If the deceased was their sole provider |

How is the pension distributed?

The deceased's pension is divided per an official schedule:

• Widow: a percentage.
• Each son or daughter: another percentage.
• Parents: another percentage.
• Total shares don't exceed 100% of the original pension.

When a beneficiary dies or a daughter marries: shares are auto-redistributed.

Steps to claim survivors' pension

| Step | Detail | |---|---| | 1 | Obtain a death certificate from Civil Affairs | | 2 | Open gosi.gov.sa → "Survivors' Pension" | | 3 | Upload death certificate + family register | | 4 | Upload each beneficiary's details (ID, relationship) | | 5 | Upload bank accounts for each adult beneficiary | | 6 | Review and submit |

Decision within 30-60 days; payment begins immediately after.

Enquiring about your pension (as a retiree)

Whether retired from PPA (pre-2017) or GOSI:

• Taminaty app: easiest, verified via Absher.
• GOSI portal: gosi.gov.sa — all your pension details.
• Phone: 920001451.
• Visit nearest GOSI branch: for complex cases.

Retiree mistakes

• Not updating bank account: suspends payment.
• Post-retirement remarriage without disclosure (for widows): forfeits share.
• Address change without update: misses important correspondence.
• Working in a government job after retirement: auto-suspends pension.
• Not applying for survivors' pension: family loses rights.

Related articles

• GOSI pension
• Early retirement — conditions and calculation
• End-of-service gratuity

The 2024 Reform and Its Impact on Former PPA Subscribers

Royal Decree M/273 of 1445 AH raised the statutory retirement age and redesigned the social insurance system. For a former government employee who was under PPA, the key points:

1. Enrolled before 1 July 2024: fully remains under the old system — retirement age 60, no change to PPA rules for their pre-merger years.
2. Enrolled after 1 July 2024: the new system applies — gradual retirement age to 65, different contribution rates.
3. Transition period: those near retirement (past age 55) in 2024 fall under a graduated transition schedule protecting their accrued rights.

Official source: Royal Decree M/273 on the laws portal and FAQs on gosi.gov.sa under the "2024 Pension Reform" section.

PPA vs GOSI Practical Calculation Differences

For a former government employee, understanding these differences is important to accurately anticipate your pension:

| Criterion | PPA (pre-2017) | GOSI (post-2017) | |---|---|---| | Annual accrual rate | 2.5% of average wage | Bracket-based tiered rate | | Average wage used | Last 24 months | Last 24 months (identical) | | Maximum pension cap | 100% of average wage | Varies under the new system | | Housing allowance | Included in wage calculation | Included under conditions | | Nature allowance | Fully counted | Counted per allowance type | | End-of-service gratuity | No (replaced by pension) | Not applicable to government employees |

The quantitative impact: a former government employee often receives a higher pension than a private-sector peer newly enrolled, because their early years are calculated under PPA's more generous rules.

Combining PPA and GOSI in a Mixed Career

Many of today's retirees worked in the government sector then transitioned to the private sector (or vice versa). In this case, years are not lost — they're aggregated under the mutual recognition principle between PPA and GOSI that operated before the merger and continues after it:

• Government years: calculated under PPA rules.
• Private-sector years: calculated under GOSI rules.
• Total years: used to verify early-retirement eligibility (20 or 25 years).
• Sum of both pensions: what's disbursed monthly.

To view your registered years across both systems, from the Taminaty app or gosi.gov.sa → "Service Record" all your contribution periods show with dates and employers.

Sources:

• General Organization for Social Insurance — gosi.gov.sa
• PPA-GOSI merger decree 2017
• Taminaty app