Cuepacs Sarawak not in favour of government abolishing pension
KUCHING: The government should not abolish the pension scheme for those who have been in government service for over 30 years.
In making this call, Congress of Union of Employees in the Public and Civil Services (Cuepacs) Sarawak chairman Omar Bahrein Unin says these civil servants have to work for this number of years before becoming eligible for the retirement benefit.
According to him, the pension scheme in Malaysia is among the best in the region and the majority of civil servants prefer it as it is perceived as something that would ensure their welfare after retirement.
“With the current low salary structure in the public service, the Employees Provident Fund (EPF) contributions are seen as being inadequate to support the civil servants, and providing insufficient savings for retirement,” he said in a statement yesterday.
Omar suggested that instead of abolishing the pension scheme, the government should reconsider the pension scheme for politicians, especially in view of possible financial constraints that might hinder the continuation of such scheme for the civil servants.
“Abolishing pensions for politicians first is the right step as most of them serve for only about five years,” he pointed out.
“They (politicians) not only receive high allowances and perks during service, but also enjoy various privileges, more than anything provided to the civil servants, who typically serve for more than 30 years.”
Omar said the government should review cases where individuals only served briefly, but got to enjoy ‘comfortable’ retirement benefits, rather than solely focusing on civil servants.
“Engage in consultations with the stakeholders before mandating EPF contributions for future appointments (in the civil service).
“Cuepacs’ view is clear – if the government wants to implement something, it must be based on the principle of not reducing the current benefits enjoyed by the civil servants,” he stressed.
Omar said the three relevant government agencies: EPF, Retirement Fund Incorporated (KWAP), and Social Security Organisation (Perkeso), should manage and discuss to propose a better alternative to replace the pension scheme, ensuring that the benefits under the current scheme would not be diminished.
“The government must ensure that today’s salaries can provide for a decent standard of living for the civil servants and at the same time, contribute to their savings for retirement.
“If the government still wants to abolish the pension scheme, it should apply to politically appointed individuals who are eligible for pensions at present,” he pointed out.
On another matter, Omar said Cuepacs welcomed the clarification provided by the Public Service Department (JPA) that the recent announcement regarding contract appointments by the government would serve as a temporary measure for new appointments in the public service, effective Feb 1 this year.