PETALING JAYA: Cuepacs, the umbrella body for civil service unions, has expressed the hope that there is still room to thrash out the proposal to do away with pensions for newly appointed government servants.
Cuepacs president Adnan Mat said, however, the congress believes the existing pension system is the most suitable for the civil servants’ financial well-being in their retirement.
Last week, deputy prime minister Ahmad Zahid Hamidi said new civil servants would no longer receive pensions but would contribute to EPF and the Social Security Organisation (Socso).
At present, civil servants are allowed to choose between the pension scheme and contributions to EPF.
Speaking to reporters in Kuala Nerus, Terengganu today, Adnan proposed a substantial increase in salaries so civil servants can save if the government decides to make changes to the Public Service Remuneration System (SSPA), including the abolition of the pension scheme.
He said the civil servants’ salaries are “just enough to get by”, leaving some unable to afford their own homes, and that the pension is a “crucial facility for post-retirement life”, Bernama reported.
He also said doing away with pensions could spell disaster for some given the rising cost of living and prices of goods.
The changes to the SSPA are expected to be finalised by the end of this year. - FMT
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