Dr Muzaffar Syah Mallow
KUCHING (March 14): The government is urged to consider abolishing pension entitlement for all elected representatives to reduce its financial burden and annual expenditure.
In making the call, Universiti Sains Islam Malaysia’s Faculty of Syariah and Laws associate professor Dr Muzaffar Syah Mallow opined that there is no need for them to be given any salary, allowance or pension if they truly care for the country and its people.
“Politicians always claim that they love the country and the people. They always tell us that they are willing to do anything including sacrificing everything for the sake of the country and the people.
“Well, the best way for them to prove their deep devotion to the country and the people which they cherish so much is by serving the country and its people for free,” he said in a statement today.
Muzaffar was responding to a recent statement by Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa, who stated that pension expenditures amounted to RM32.01 billion in 2023 and are expected to reach RM46.36 billion by 2030.
Adding on, he said the funds set aside for elected representatives’ salary, allowances and pension could be better spent on improving all the schools, higher learning institutions and hospitals which need financial assistance.
With the appointment of non-pensionable permanent employment in the civil service in the near future, he said the new intake of civil servants will no longer enjoy pension and all the benefits attached to it like their predecessors.
Instead, he said the newly-recruited civil servants will be required to contribute to the Employees’ Provident Fund (EPF) and subject themselves to all the requirements under the EPF scheme like those serving the private sector.
While the EPF members have their monthly salaries deducted and such retirement funds can be withdrawn upon reaching the age of 60, the public pension scheme takers are not required to make any contributions and will receive monthly pension at a percentage of the last salary upon their retirement, he pointed out.
As such, he said the public pension scheme is deemed a coveted benefit of being a government servant that comes with other perks as well.
He added that civil servants, under the existing policy, can choose either the public pension or EPF as their retirement scheme.
Muzaffar said the government needs to examine and revise existing laws including the Federal Constitution if it wants to abolish the pension scheme for newly-recruited civil servants.
According to him, pension is a right protected under Article 147 of the Federal Constitution and guaranteed under the Pensions Act 1980 [Act 227].
“There are pros and cons to the new policy over this matter,” he said.
