Review of pensions should start with elected representatives, says Libaran MP

KOTA KINABALU: The government should start the proposed abolition of pension schemes by reviewing the benefits for elected representatives, says Libaran MP Datuk Suhaimi Nasir.

“It is unfair to civil servants who on average have served more than 30 years before being eligible to pension benefits, while elected representatives who have only served for five years are almost immediately eligible to receive pensions,” said the Sabah Umno information chief.

Suhaimi, who was both the Libaran MP and a nominated assemblyman, said the government should review the provision of pensions to elected representatives considering the financial pressure that the government is currently facing.

“We understand the financial pressure borne by the government. If the government still wants to end this pension scheme, it should apply to political appointees who are eligible to receive the scheme.

“We urge the government to conduct a review of the pension scheme,” he added.

He said that the Umno Youth proposal on reviewing the pension scheme was very well received by various parties.

Suhaimi also said that he agreed with Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi’s statement regarding Cabinet’s decision to agree to the appointment of new civil servants with permanent status who would no longer receive pensions through the new retirement scheme.

“I firmly agree that new civil servants with permanent status contribute to the Employees’ Provident Fund (EPF) and the government will contribute to contributors as is done in the private sector’s system,” he said.

Suhaimi said that the government would incur a cost of up to RM120bil by 2040 just to pay civil servant’s pensions with the existing retirement system.

“This will help reduce the cost incurred by the government for the payment of the new retirement system to civil servants which should also involve the elected representatives,” he added.