KUALA LUMPUR – The proposal to terminate Public Service Pension Scheme for new appointments has yet to be discussed at the Cabinet level yet.
According to the Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail, the proposal is still being studied and needed some fine tunings.
“I understand that many things need to be fine tuned and it is still being studied.
“We have yet to discuss about that at the Cabinet,” he told the reporters after launching the Women in Business (WinBiz) programme introduced by Bank Islam today.
Yesterday, the Director-General of Public Service, Datuk Seri Borhan Dolah said that a new mechanism will be introduced to replace the current pensions scheme.
The new mechanism is targeting to reduce the government’s expenditure of up to RM5 billion per year and is expected to be rolled out next year.
He said the move was decided at a special Public Service Reform Committee meeting in October 2018 which wanted the civil service to be reduced in size and in phases, based on need, as well as to reduce the burden of pensions which is now reaching RM28 billion. -MalaysiaGazette