The Council of Ministers,
after perusal of Royal Court File 56156 dated 13 Rajab 1447 [2 January 2026], which includes Minister of Economy and Planning, Chairman of the Pension Laws Reform Committee, Telegram 4504163 dated 13 Ramadan 1445 [23 March 2024], regarding the study prepared to assess the support mechanisms for the General Organization for Social Insurance, and the minutes of Pension Laws Reform Committee Meeting 36 dated 15 Sha’ban 1445 [25 February 2024], which include a number of relevant decisions,
after perusal of the Law on the Exchange of Benefits Between the Civil and Military Pension Laws and the Social Insurance Law issued by Royal Decree D/53 dated 23 Rajab 1424 [20 September 2003],
after perusal of the Rules and Arrangements on the Manner of Treatment of Saudi Officers and Employees in the Sectors Targeted for Privatization upon the Transfer of These Sectors to the Private Sector, issued by Council of Ministers Decision 210 dated 18 Rajab 1429 [21 July 2008] (repealed),
after perusal of the Rules and Arrangements on the Manner of Treatment of Officers and Employees in the Sectors Targeted for Transformation and Privatization issued by Council of Ministers Decision 616 dated 20 Shawwal 1442 [1 June 2021],
after perusal of Council of Ministers Decision 341 dated 19 Jumada Al-Awwal 1441 [14 January 2020], Decision 179 dated 17 Rabi Al-Awwal 1442 [3 November 2020], Decision 196 dated 24 Rabi Al-Awwal 1442 [10 November 2020], Decision 159 dated 13 Rabi Al-Awwal 1443 [19 October 2021], Decision 32 dated 11 Muharram 1444 [9 August 2022], and Decision 35 dated 11 Muharram 1444 [9 August 2022],
after perusal of Bureau of Experts at the Council of Ministers Memo 44 dated 3 Muharram 1446 [9 July 2024] and Memo 2679 dated 3 Sha’ban 1446 [2 February 2025],
after perusal of Council of Economic and Development Affairs Recommendation 3-10/46/R dated 13 Ramadan 1446 [13 March 2025],
after considering Shura Council Decision 178/14 dated 3 Rajab 1447 [23 December 2025],
and after perusal of General Committee of the Council of Ministers Recommendation 9054 dated 20 Sha’ban 1447 [8 February 2026],
hereby decides
First
The recognition of actuarial impact on pension funds in pension laws resulting from transfer and privatization operations as arising from the nature of those laws is hereby approved, provided that this impact is demonstrated through the actuarial studies periodically prepared by the General Organization for Social Insurance in accordance with the provisions of those laws, with a view to compensating the funds for this impact through reactive funding should they become financially insolvent.
Second
The mechanism for calculating the actuarial impact—referred to in clause First of this decision—is hereby approved as follows:
1․ Calculating the net actuarial gains and losses for all pension funds under the pension laws.
2․ Calculating only past acquired rights.
Third
The application of articles 26 and 27 of the Rules and Arrangements on the Manner of Treatment of Officers and Employees in the Sectors Targeted for Transformation and Privatization issued by Council of Ministers Decision 616 dated 20 Shawwal 1442 [1 June 2021] is hereby ended.
Fourth
The application of clauses Fifth and Sixth of the Rules and Arrangements on the Manner of Treatment of Saudi Officers and Employees in the Sectors Targeted for Privatization upon the Transfer of These Sectors to the Private Sector, issued by Council of Ministers Decision 210 dated 18 Rajab 1429 [21 July 2008], is hereby ended.
Fifth
The application of the provisions relating to the formation of committees tasked with preparing a comprehensive study to determine the additional financial costs that may be borne by either the Civil Pension Law or the Social Insurance Law, as set out in the Rules and Arrangements on the Manner of Treatment of Officers and Employees in Government Agencies Targeted for Privatization or Transformation, in respect of which Council of Ministers decisions have been issued separately, is hereby ended.
Sixth
All outputs of the technical committees formed to determine the costs resulting from the transformation or privatization process, in respect of which no decisions have been issued by the Council of Ministers, are hereby abolished.
Seventh
The transformation and privatization procedures must be completed for the entities for which transformation or privatization decisions have been issued, in accordance with the provisions of clauses First, Third, Fourth, Fifth, and Sixth of this decision.
Eighth
Entities in respect of which transformation or privatization decisions are to be issued shall notify the General Organization for Social Insurance of such decisions within a period not exceeding 30 days from the date of their issuance, and shall also provide the organization with all data and information it requests concerning the officers and employees covered by the transformation or privatization within a period not exceeding 30 days from the date of implementation of the transformation or privatization.
Ninth
Article 6(5) of the Law on the Exchange of Benefits Between the Civil and Military Pension Laws and the Social Insurance Law issued by Royal Decree D/53 dated 23 Rajab 1424 [20 September 2003] is hereby repealed.
Tenth
The Council of Ministers decisions issued regarding the payment of the additional financial costs resulting from the Civil Pension Law and the Social Insurance Law, which have not yet been paid, are hereby repealed, in light of the provisions of clauses First, Third, Fourth, Fifth, and Sixth of this decision.
A draft royal decree has been prepared regarding clause Ninth of this decision, in the form attached to this.
The Prime Minister
Issued on: 14 Ramadan 1447
Corresponding to: 3 March 2026
Published in Umm Al-Qura 5151 issued on 30 March 2026.