'Existing civil servants under pension scheme won't be affected'

Existing civil servants who have chosen the pension scheme will not be affected by the proposed new public service remuneration system, says Finance Minister II Amir Hamzah Azizan.

At a first press conference today, he said the government was committed to ensuring the welfare and well-being of civil servants and pensioners were always protected.

"I would like to emphasise that in terms of pensions, the government does not intend to change (the pension scheme) for those who already have it.

“So, if the civil servant has already worked with the government, nothing will change, (only) for those who have just entered, they will enter on a contract basis for now.

"Those who are already in the current system, we will not change, that is the promise we have made," he said.

Also present was Treasury secretary-general Johan Mahmood Merican.

Amir Hamzah said the government had allocated RM31 billion for pension payments to retirees this year, and the figure was expected to increase to RM120 billion in 2040.

He also pointed out that in terms of the country’s financial management, 48 percent of the budget was allocated to emoluments and pensions.

"If we can lighten the (government's) existing burden, we can channel the surplus to other areas that are important for the people and country such as education and better infrastructure facilities," he added.

Amir said the government understood the role of civil servants in the administration of the country was important, and therefore, the government was committed to improving their welfare.

This includes the payment of an RM2,000 bonus to be paid next month and an allocation of RM2.4 billion to build, maintain and refurbish quarters for civil servants, teachers, hospital staff - as well as police, military personnel and firefighters.

‘Understand the situation’

"The government will also finalise the salary adjustment for civil servants this year after reviewing the Public Service Remuneration System (SSPA).

"Overall, the government is sensitive (to the situation on the ground) and will do what is important for the good of civil servants," he said.

Public Service director-general Wan Ahmad Dahlan Abdul Aziz, in a circular dated Jan 15, said that a new method for the permanent appointment of civil servants would be introduced to strengthen the public service remuneration system in Malaysia.

He said the cabinet had also decided that in the interim, the hiring of civil servants for permanent positions would be conducted through a contract of service (COS) system,” he said.

Deputy Prime Minister Ahmad Zahid Hamidi was reported to have said that the recruitment of new civil servants on a contract basis was for a short period before the cabinet approved a new policy of non-pensionable permanent employment.

- Bernama