ALOR SETAR: The government has not discussed or decided on a new scheme to replace the existing pension scheme for civil servants, said Tun Dr Mahathir Mohamad.
The prime minister said it was aware of problems with the existing scheme as pension payments had become a huge financial burden to the government.
“Payment of pensions are now a problem because some senior officers are earning a big salary of up to RM20,000 a month, and they will receive half of their last pay upon retirement.
“Previously, the monthly salaries of senior officers never exceeded RM6,000 or RM7,000, and they would receive RM3,000 pension a month.
“But, we are also aware that living costs have increased considerably, so we need to study the pension scheme from time to time,” he said after opening the 2019 National Padi Convention here today.
Recently, Public Service Department director-general Datuk Seri Borhan Dolah was quoted as saying that a new pension scheme was expected to be implemented next year, involving new appointments in the public sector.
The mechanism, which could reduce the government’s financial burden by up to RM5 billion a year, is still being fine-tuned.