Akmal: Any move to phase out pensions should start with elected reps

 

Any proposed phasing out of pension schemes for public servants in the future should begin with elected officials, said Umno Youth chief Dr Muhamad Akmal Saleh.

He said it would be unfair otherwise, and that there must not be double standards between the people and their representatives.

“We understand the financial pressure the government is under, but let the cancelling of this pension scheme begin with the people's representatives.

“It is not fair if we cancel their pensions, but we still enjoy our pensions until we die,” he posted on Facebook.

Akmal also called on the government to consider his proposal and asked for the agreement of all parties, including the opposition.

He tagged Prime Minister Anwar Ibrahim, Deputy Prime Minister Ahmad Zahid Hamidi, PAS president Abdul Hadi Awang and Perikatan Nasional chairperson Muhyiddin Yassin in his post.

On Tuesday, Public Service Department director-general Wan Ahmad Dahlan Abdul Aziz said the decision to recruit new civil servants via a contract appointment system will take effect from Feb 1.

He said it is expected to reduce the country’s fiscal burden.

Temporary measure

Yesterday, Zahid said the recruitment of civil servants on a contractual basis is a temporary measure pending the cabinet’s approval of a new policy of non-pensionable permanent employment.

Zahid also claimed that the government’s liability for pension payments will hit RM120 billion by 2040 if the current policy for hiring civil servants continues.

He assured civil servants that those hired under the existing policy would receive their pensions upon completion of their service.

The shift is part of a broader move away from traditional pensions, he said, adding that contribution rates for the Employee Provident Fund and Social Security Organisation schemes will be aligned with those in the private sector.

“Therefore, the long-term approach is to implement this new system for newly appointed civil servants, while the existing ones will continue with the current system, which includes pension benefits.

“The announcement of specific dates for the implementation will be made by the chief secretary (Mohd Zuki Ali), and it is expected to take effect this year,” said Zahid. - Mkini