PM: No-pension scheme will apply to politicians too [NSTTV]

KUALA LUMPUR: The review on pension schemes also applies to politicians, said Prime Minister Datuk Seri Anwar Ibrahim.

"Principally, I agree that whatever decision made on the civil service also applies to political appointees.

"However, this will only be finalised after the study on the review is brought to the cabinet to be decided," he told reporters at Desa Sri Hartamas today.

This means, if the new hires of civil servants do not receive pension, it will also be applied to appointments of politicians, he said.

Anwar, who is also finance minister, said he had issued a statement on the matter today and he would do so soon.

He said some quarters questioned the salaries of prime minister, ministers, menteris besar, but they are in accordance with the Federal Constitution and any review could not be applied in retrospective.

Some critics, in misreading that pensions reform affect existing employees, snide that pensions of elected representatives should go first.

And it has, the prime minister later announced in clarifying the further extent of the pensions reformation.

"There has been a lot of confusion on this.

"Listen to the proposal first, debate and study to provide views for any fine-tuning by the government before it is finalised."

He said the country's economy could not possibly be sustained if nothing was done, referring to the huge annual allocation of over RM120 billion to cover pensions.

He then proceeded to Masjid Al-Ubudiah, Bukit Segambut, for Friday prayers after having lunch here.

Anwar, who is also finance minister, said the second finance minister had issued a statement on the matter today and he would do so soon.

Deputy Prime Minister Datuk Seri Dr Zahid Hamidi had on Wednesday announced the proposed new pension scheme for the civil service.

Under this method, new hires in the civil service will contribute to retirement schemes like the Employee Provident Fund (EPF) and Social Security Organisation (Perkeso).

In response, the Congress of Unions of Employees in the Public and Civil Services (Cuepacs) rejected the proposal to abolish the pension scheme for new hires in the civil service.

Cuepacs, along with other groups, including politicians, had called for the government to review the pension schemes for political figures before applying it on government staff.

Perlis Menteri Besar Mohd Shukri Ramli said he personally is against the move unless it is being conducted across the board, including elected representatives.

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