Kuala Lumpur: No new alternative benefits have been offered to 165 Sabah Ports Authority (LPPS) retirees claiming their contributions under the Retirement Benefit Scheme (RBS).
Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said a review of their court claims found that 157 plaintiffs were under the Full Pension Scheme and eight plaintiffs under the Full EPF Benefits scheme.
“The Kota Kinabalu High Court dismissed the claims by these LPPS retirees on March 22, 2010,” he said in a written reply to a question from Tuaran MP Datuk Seri Wilfred Madius Tangau at the Dewan Rakyat.
“The court ruled that the LPPS retirees making the claims were estopped from seeking the return of the remaining funds, and the matter cannot be reopened under the principle of res judicata.
“In this regard, the Ministry finds that LPPS’s action of transferring the funds to KWAP was in order, and no new alternative benefits have been offered to the LPPS retirees.”
In his question, Madius asked the Finance Minister to state the resolution for a group of LPPS retirees seeking their retirement funds after disputes with the Retirement Fund Incorporated (KWAP).
“Given that the funds accumulated under their RBS in KWAP amount to over RM5.8 million, does the Ministry intend to offer them alternative benefits?” Madius inquired.
Anwar clarified that contributions under the RBS scheme involved only employer contributions from LPPS at 20 per cent, with no contributions or payments made by employees.
“In line with the introduction of the statutory and local authority pension scheme through the Harun Commission, the portion of contributions made by employers for employees who opted for the Full Pension Scheme must be returned to the employer.
“As such, LPPS, as the employer, transferred the RBS funds to KWAP by Section 8 of the Statutory and Local Authorities Pensions Act 1980 [Act 239] and Section 13 of the Retirement Fund Act 2007 [Act 662].
“For employees who opted for the Full EPF Benefits scheme, they were allowed to withdraw savings from the total employer and employee contributions as per existing regulations under the Employees Provident Fund (EPF) scheme, in addition to receiving reduced pension and reduced gratuity,” he said.
