New pension system will not affect existing civil servants

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Pension scheme pension policy civil servants Prime Minister Tun Dr. Mahathir Mohamad during the Question and Answer session at the Dewan Rakyat sitting. Sitting next to him is Deputy Prime Minister Datuk Seri Dr. Wan Azizah Wan Ismail (left) at the Parliament in Kuala Lumpur. PIX: AFFAN FAUZI / MalaysiaGazette /22 OCTOBER 2019
Prime Minister Tun Dr. Mahathir Mohamad during the Question and Answer session at the Dewan Rakyat sitting. Sitting next to him is Deputy Prime Minister Datuk Seri Dr. Wan Azizah Wan Ismail (left) at the Parliament in Kuala Lumpur. PIX: AFFAN FAUZI / MalaysiaGazette /22 OCTOBER 2019

KUALA LUMPUR – All confirmed civil servants and existing pensioners will continue to enjoy the benefit and facilities under the Pension Scheme, said Prime Minister Tun Dr Mahathir Mohamad.

According to him, the pension benefits given to the Government pensioners are the Government’s appreciation and acknowledgement towards their contributions throughout their service.

It benefits, according to him, is covered under Article 147 of the Federal Constitution, pension is the responsibility of the Federal Government and it is regulated under the Pensions Act 1980 (Act 227) and Statutory And Local Authorities Pensions Act 1980(Act 239).

“However, the Government is facing challenges in supporting the pension benefits as its number is increasing,” he said in reply to the seventh question by the Members of Parliament involving the civil servants’ pension scheme at the Dewan Rakyat today.

Dr Mahathir shared that the cost of pension benefit in 2018 has rose to RM23.87 billion, compared to only RM5.86 billion in 2006.

He said, the number is expected to increase every year, especially after the previous government increased the salaries of the civil servants several times and it also increases the government’s liabilities.

According to the Prime Minister, to overcome that issue, the government is studying several new mechanisms which would not burden the government, but at the same time, will benefit the civil servants after their service ended.

Answering the additional question from Khairy Jamaluddin Abu Bakar (BN-Rembau), Dr Mahathir said, the government will not forsake the agreement that was signed by the civil servants.

“For those who are working based on the previous policy, we will maintain the previous policy,” he said. -MalaysiaGazette

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