PETALING JAYA: The proposed change to civil servant pensions should have been discussed with key stakeholders and its details confirmed before being announced, says former Bangi MP Ong Kian Ming.
Ong, of DAP, panned the announcement by deputy prime minister Zahid Hamidi on Jan 24 that new batches of civil servants will not receive pensions, but will contribute to the EPF and Social Security Organisation (Socso) instead.
“For such an important policy change, the government must ensure proper stakeholder engagement and buy-in before any official announcements are made,” he said in a statement, adding that the proposal seemed “rushed and haphazard”.
“A comprehensive communications plan should also be developed so that when this announcement is made, with public support from the relevant stakeholders, these policy changes cannot be spun and used to attack the government in ways that are inaccurate.”
Ong said discussions would need to focus on, among others, the new salary scheme, including its benefits and allowances, with comparison to the revised salary scheme for current civil servants.
He said they must also address the policy’s financial implications so that “financial markets are assured that these changes will not negatively impact government spending in the long term”.
At present, civil servants are allowed to choose between the pension scheme and contributions to EPF.
Cuepacs, the umbrella body for civil service unions, has spoken against the abolition of the pension scheme, saying most civil servants prefer it as the “best option” for them.
“Due to the current low salaries in the civil service, EPF contributions are seen as inadequate in helping civil servants build a substantial retirement fund,” Cuepacs president Adnan Mat was reported to have said.
He said if financial constraints hinder the government from continuing the scheme, it should also “reconsider providing pensions to politicians”.
