KUCHING, March 16 — The government should not abolish the pension scheme for civil servants who have served the nation for over 30 years before becoming eligible for retirement benefits, said Congress of Union of Employees in the Public and Civil Services (Cuepacs) Sarawak chairman Omar Bahrein Unin.
In a statement today, he said the pension scheme in Malaysia is among the best and most civil servants prefer it as it is perceived to be superior and ensures welfare after retirement.
“With the current low salary structure in the public service, the Employees Provident Fund (EPF) contributions are seen as inadequate to support civil servants, providing insufficient retirement savings,” he said, adding that most civil servants chose the pension scheme as it is the best privilege.
Omar suggested that instead of abolishing the pension scheme, the government should reconsider pensions for politicians, especially if financial constraints hinder the continuation of the civil service pension scheme.
He said abolishing pensions for politicians first is the right step, as most serve for only about five years.
“This group not only receives high allowances and perks during service, but also enjoys various privileges compared to civil servants who typically serve for over 30 years,” he said.
He said the government should review cases where individuals serve briefly but enjoy comfortable retirement benefits rather than solely focusing on civil servants.
“Engage in consultations with stakeholders before mandating EPF contributions for future appointments. 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 civil servants,” he said.
Omar said three relevant government agencies, namely EPF, the Retirement Fund Incorporated and Social Security Organisation, should manage and discuss to propose a better alternative to replace the abolished pension scheme and ensure the benefits are not diminished compared to the current pension scheme.
“The government must ensure today’s salaries provide a decent standard of living for civil servants and at the same time contribute to savings for retirement.
“If the government still wants to terminate this pension scheme, it should apply to politically appointed individuals eligible for pensions at present,” he said.
Meanwhile, he said Cuepacs welcomes the clarification provided by the Public Service Department that the recent announcement regarding contract appointments by the government is a temporary measure for new appointments in the public service starting February 1 this year. — The Borneo Post
