PETALING JAYA: The pension scheme for elected representatives must be reformed to do away with the culture of “money politics” in the country, a former elected representative said.
Former Sungai Benut MP Tawfik Ismail said money should not be the main consideration when entering politics because an elected representative’s priority is to serve the people.
“The reason why people go into politics is because of the lucrative reward that is there, which is the wrong reason to get into politics.
“In a democracy, anyone who wants to serve (as an elected representative) has to do so voluntarily and without any thought of financial reward,” he told FMT.
Under the Members of Parliament (Remuneration) Act 1980, MPs are entitled to a RM16,000 monthly salary and additional gratuities and allowances. The Act also entitles MPs to a pension after only 36 months of service.
Based on the formula provided in the Act, MPs are entitled to a monthly pension of RM4,000 if they have served a prescribed minimum period.
The pensions are only paid to MPs who no longer serve their constituencies, and following the appointment of a new Parliament.
The Act also states that former MPs must be 55 years and above to be entitled to receive their pensions.
Former law minister Wan Junaidi Tuanku Jaafar told FMT that politicians may be entitled to up to four pensions, depending on the roles they have at state and federal level provided there are provisions for the payment of allowances and pensions under the state’s laws.
Selangor state assembly members who have served for 36 months are entitled to a monthly pension of RM500 provided they are above 55 years of age and no longer serving in the assembly.
In March, Sabah and Sarawak affairs minister Armizan Ali told the Dewan Rakyat that elected representatives are entitled to multiple pensions depending on the different acts or ordinances their service falls under.
He said those who served as state assemblymen will receive a pension under a state ordinance or enactment and at the same time, if they qualify, may receive a pension as an MP under the federal law.
Tawfik, the son of Malaysia’s second deputy prime minister, Dr Ismail Abdul Rahman, said it was unfair for politicians to receive multiple pensions as this would mean they were being remunerated “over and beyond” the value of their service.
Calling on Parliament to pass reforms to the pension laws, he said it was wrong for MPs to be entitled to a pension after only a “few years of work” especially if they are not re-elected or are dropped as candidates by their parties.
Economist Barjoyai Bardai of Universiti Tun Abdul Razak agreed that entering politics should not be seen as a purely monetary endeavour.
He said funds set aside to pay pensions for former elected officials could be better redistributed to projects that benefit the people.
Barjoyai said civil service pension schemes needed to be reformed as allocating large sums of the federal budget to pay pensions is not sustainable.
In 2021, then prime minister Ismail Sabri Yaakob said pension payments were expected to reach RM46.6 billion in 2030, up from RM26.38 billion in 2020.
Meanwhile, Ramon Navaratnam, a former deputy secretary-general of the Treasury, called on the government to review the pension scheme for civil servants as there were retirees whose pensions were now inadequate in light of sharp increases to the cost of living. - FMT
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