Bersatu: Govt should not abolish pension scheme for new civil servant hires

KUALA LUMPUR: Parti Pribumi Bersatu Malaysia (Bersatu) information chief Datuk Razali Idris today agrees with Prime Minister Datuk Seri Anwar Ibrahim's statement that the new non-pension scheme for civil servants is also applicable to political appointments.

He, however, said the government should not abolish the pension scheme for new civil servant hires.

"There are 222 members of parliament. Please cut whatever allowances or pension payments that are deemed not necessary.

"It's not a problem (cutting their allowances), but do not touch the pension scheme of 1.6 million civil servants," he told BH.

Razali said most civil servants were in the low- or middle-income groups, with only a few in the high-income group.

"If the reason (to scrap the pension scheme) is that the quality of the service is not equal to the salary, then we need to improve the service, not abolish the pension scheme."

He said civil servants, including those in uniforms, health workers, security personnel and teachers, had contributed a lot to the country.

"The situation would be chaotic as young people will not want to serve in the public service because salaries are already low and there will be no pension.

"Other benefits may be abolished in the future too.

"The government should think of ways to increase people's income to balance the country's spending and not cut important expenses, such as the pension scheme for civil servants."

He said the government should introduce an option for civil servants, such as those offered to employees of Tenaga Nasional Bhd and Telekom Malaysia when the government agencies moved to private schemes.

"Give them (civil servants) a choice, such as staying in the government salary scheme with a pension, or increasing their salary with contributions to the Employees Provident Fund."

Anwar yesterday said the review of pension schemes also applied to political appointments.

He, however, said the matter would be finalised only after the study on the review was brought to the cabinet.

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