KUALA LUMPUR: The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) has rejected the proposal to abolish the pension scheme for new hires in civil service.
Its president Datuk Dr Adnan Mat said politicians, such as those elected as members of Parliament (MPs), assemblymen and state executive councillors, who are eligible to receive pensions, should have theirs abolished first, instead of those serving in the public sector.
"If financial constraints hinder the government from continuing the public service pension scheme, then the government also needs to reconsider providing pensions to political figures.
"The abolishment of pensions should be made for this group first as most of them only serve for about five years only.
"Not only do they receive high allowances and allocations while in service, but they also enjoy various privileges compared to civil servants who, on average, serve more than 30 years.
"The current priority for the government should instead be to examine cases where individuals serve for a short period but enjoy comfortable benefits, rather than targeting only civil servants," he said in a statement today.
Adnan said the government should have held prior engagement sessions with stakeholders before deciding to implement schemes for those new in the civil service.
He said Cuepacs' standpoint was clear, if the government intended to implement any measures, they must be based on the principle of not reducing the current benefits enjoyed by civil servants.
"The government should ensure that the current salaries provide a decent standard of living for civil servants, and, at the same time, are sufficient for retirement savings.
"If the government insists on terminating the pension scheme, it should be applicable to politically-appointed individuals who are currently eligible for pensions."
Although some civil servants opt for Employees Provident Fund (EPF) contributions, the majority prefer the pension scheme, he said.
With the current low salary structure in the public service, Adnan said the EPF contribution scheme was deemed insufficient in helping civil servants build a comfortable retirement.
"This is why most civil servants prefer the pension scheme, considering it the best option for securing their future," he said.