Cuepacs rejects proposal to abolish pension schemes for new hires in civil servants

Cuepacs rejects proposal to abolish pension schemes for new hires in civil servants

PETALING JAYA: The proposal to abolish pension schemes for new employees in civil service has been rejected by the Congress of Unions of Employees in the Public and Civil Services (Cuepacs).

In a recent statement by Cuepacs president Datuk Dr Adnan Mat, he said that those in politics eligible to receive their pensions, such as assemblymen, members of Parliament and state executive councillors, should have theirs abolished first instead of government servants.

“If financial constraints hinder the government from continuing the public service pension scheme, then the government also needs to reconsider providing pensions to political figures.

“The abolishment of pensions should be made for this group first as most of them only serve for about five years only.

“Not only do they receive high allowances and allocations while in service, but they also enjoy various privileges compared to civil servants who, on average, serve more than 30 years.

“The current priority for the government should instead be to examine cases where individuals serve for a short period but enjoy comfortable benefits, rather than targeting only civil servants,“ Adnan said, according to a report by NST.

Adnan also pointed out that prior engagement sessions with stakeholders should have been held by the government before deciding to implement any schemes for civil servants.

He added that any schemes involving civil servants should not reduce any current benefits enjoyed by them.

“The government should ensure that the current salaries provide a decent standard of living for civil servants, and, at the same time, are sufficient for retirement savings.

“If the government insists on terminating the pension scheme, it should be applicable to politically-appointed individuals who are currently eligible for pensions.”

Not only that, Adnan said that the majority of those in civil service preferred the pension schemes compared to relying on their Employees Provident Fund (EPF) contributions.

Besides that, it was found that the EPF contribution scheme was seen as insufficient, especially with the current low salary structure, in ensuring civil servants are able to have a comfortable retirement.

“This is why most civil servants prefer the pension scheme, considering it the best option for securing their future,“ he said.

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