KUALA LUMPUR: The government has been urged to reconsider its proposal to abolish the pension scheme for newly hired civil servants.
Perikatan Nasional (PN) Youth deputy chief Wan Ahmad Fayhsal Wan Ahmad Kamal said that while he was aware of the importance of restructuring the remuneration scheme and to ensure the country's financial stability, a study first must be carried out.
"It must be scrutinised further and it needs to take into account the pension rights that are stated in Article 147 of the Federal Constitution and the Pension Act 1980 (Act 227).
"In fact, Prime Minister Datuk Seri Anwar Ibrahim had once insisted that the federal government would not withdraw the pension scheme, given that the provision is clearly enshrined in the Constitution.
"This decision should be reconsidered by all quarters," he said yesterday.
Previously, Deputy Prime Ministe, Datuk Seri Dr Ahmad Zahid Hamidi had said that the cabinet agreed that new civil servants would no longer get pensions when they retired.
They would instead contribute to the Employees Provident Fund (EPF).
The media had also recently reported that recruitment by contract appointments would be done in the civil service as an interim step towards the implementation of a new method of permanent appointments pending amendments to related acts.
Wan Fayhsal, who is Machang member of parliament, said the government should reconsider the proposal and find alternative solutions that benefited the people and reduced the country's financial burden.
Meanwhile, Parti Pribumi Bersatu Malaysia (Bersatu) information chief Datuk Razali Idris agreed with Anwar that the implementation of a new non-pension scheme for civil servants should be applicable to political appointments.
He, however, insisted that the government should not abolish the pension scheme of newly appointed civil servants.
"There are 222 politicians, please cut whatever allowances or pension payments that are unnecessary.
"It's not a problem (with cutting the allowances), but do not touch the pension scheme," he told Berita Harian yesterday
Razali said the civil servants were mostly those with low or medium income, with only a few earning high salaries.
"If the reason (to scrap pension) is the quality of the service is not equal to the salary, then the improvement of the service is needed, not the abolition of the pension scheme," he said.
Razali said civil servants had contributed a lot to the country.
"(If the proposal is implemented) chaos could ensue in the country because young people no longer want to serve in the public service because the salaries are already low and there is no pension."