KUALA LUMPUR: Following the proposal of a new pension scheme for civil servants, the government has been urged to cap the pensions for politicians, including ministers and elected representatives.
Congress of Unions of Employees in the Public and Civil Services (Cuepacs) secretary-general Abdul Rahman Mohd Nordin said this would only be fair to civil servants.
Politicians are currently entitled to a full pension once they have completed 36 months of reckonable service.
"Malaysia should emulate the pension schemes of other countries, such as India where it limits politicians' pensions.
"Our politicians receive up to RM20,000 a month. The pension should be capped at RM8,000 to RM10,000," he told the New Straits Times.
He added that the government should also establish a mechanism such as a committee to evaluate the salaries and pensions of civil servants.
Abdul Rahman said the introduction of a new pension scheme might backfire as the money could be depleted over time due to the rising cost of living.
"If the money is depleted, they will have no other assistance, where would they find the money?
"Hence, the government should be able to find ways to handle financial issues. You cannot just abolish (the pension scheme for civil servants) as we are the backbone of the country."
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi on Jan 24 announced that civil servants hired from Feb 1 would no longer qualify for pensions and would instead contribute to the Employees Provident Fund (EPF) and Social Security Organisation (Perkeso).
There was a backlash from certain quarters who urged the government to first abolish the pension scheme for politicians.
Following this, Prime Minister Datuk Seri Anwar Ibrahim announced that politicians who were entitled to more than one pension scheme should only choose one as part of their moral responsibility.
Anwar said the new pension scheme for civil servants was only a proposal and no decision had been made on the matter.
Meanwhile, the Council of Former Elected Representatives (Mubarak) president Tan Sri Abdul Aziz Rahman said instead of focusing on the pension schemes of politicians and civil servants, the "lopsided" salary and tax structure in Malaysia should first be reviewed.
Citing examples of pension schemes in Scandinavian countries, Abdul Aziz said individuals who did not work with the government, especially the elderly, were entitled to receive government pensions in a progressive tax structure.
"These Scandinavian countries were able to do that as they have a progressive tax structure. They are taxed at the highest level, unlike us where whatever you earn per month, you only pay 24 per cent maximum.
"Hence, we need to be able to look at the total structure, we cannot just pinpoint one part (no pension for civil servants or abolishing politicians' pensions). We have got to look at the total picture."