Potential strain on government finances

BINTULU: Continuing to grant pensions to politicians could burden the government that might hinder the sustainability of the public service pension scheme.

Universiti Malaysia Sabah (UMS) senior lecturer Dr. Lee Kuok Tiung said the focus shouldn’t just be on civil servants, but should also include politicians.

He highlighted a common concern regarding why politicians should receive pensions when their income is primarily derived from allowances as elected representatives, rather than a regular salary.

“It’s not that we oppose the government’s proposal. In our public service system, when confirming positions, civil servants have the choice between the Employees’ Provident Fund (EPF) scheme or a pension.

“For those new in service or on contract, EPF is the only option. Only those in permanent new positions can choose between the EPF scheme or pension,” said Dr Lee.

He also noted that most civil servants opt for the EPF scheme due to the advantage of receiving a lump sum at the end of their service, compared to a monthly pension based on their last salary.

Dr. Lee emphasised the need to understand the purpose of pensions, which is to provide financial security post-retirement. He pointed out that the politicisation of this issue by some parties has led to undue moral panic among government pensioners.

He reassured that the government’s proposal would only affect new civil servants, not those who are already retired or have chosen the pension scheme.