Abang Johari declines to comment on federal govt’s proposed pension payment for civil service

KUALA LUMPUR (Jan 30): Sarawak Premier Tan Sri Abang Johari Openg today refrained from offering direct commentary on the federal government’s proposed pension scheme, citing its connection to government policy.

However, he said that a state government initiative known as JBC (Joint Benefits Contribution) was already in place for all new civil service officers in Sarawak.

“I don’t dare to comment because that involves government policy.

“Actually, one already exists in our state government. We call it JBC for all our new officers which contributes to the Employees Provident Fund (EPF),” he said after attending the Malaysia Market Outlook Session 2024 organised by Affin Group at Menara Affin, Tun Razak Exchange here, today.

He said that JBC operates similarly to the EPF, a national savings scheme in Malaysia.

He also emphasised that the fundamental difference lies in discipline, as sometimes individuals choose to withdraw their entire EPF savings.

“There is no difference between EPF and pension. Only one, sometimes, EPF, if we are not disciplined, we take out all the EPF. If you have discipline, if this EPF has rules like one month, a certain amount is equivalent to pension,” he said.

He also drew a parallel with Norway’s pension system, where disciplined adherence to rules ensures that pension fund beneficiaries receive their whole savings.

On January 24, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi announced a new civil service hiring policy, which includes the introduction of a new pension scheme.

He said that under this policy, new civil service recruits would contribute to retirement schemes like EPF and Social Security Organisation (Socso), aligning with the broader initiative to phase out traditional pensions.

On January 26, Prime Minister Datuk Seri Anwar Ibrahim said that the review of pension schemes will apply to all future political appointments. — Malay Mail