This is one of the many articles on pension planning that appears in the news recently. I will also post the other articles shortly.
Isnin, 2009 Oktober 05
CUEPACS: PENSION MORE BENEFICIAL THAN EPF
By Shazwan Mustafa Kamal
KUALA LUMPUR, Oct 5 — Cuepacs president Omar Osman said civil servants stand to lose more under the current Employees Provident Fund (EPF) scheme.
That is why Cuepacs, together with the workers’ unions in seven government agencies, will be submitting a memorandum to the prime minister in an effort to ensure the welfare of these civil servants after they retire.
“We are pushing the government to look at the current status of government employees who have been allotted separate retirement plans from other government agencies,” he said referring to the seven government bodies.
There are about 60,000 employees in the seven agencies. They are Socso, the, EPF, Lembaga Tabung Angkatan Tentera, Tabung Haji, Perbadanan Hal Ehwal Bekas Angkatan Tentera (KEBAT), Bank Simpanan National and the Inland Revenue Board.
These agencies have been accorded different retirement schemes from other government bodies because they “have been given the task of managing and handling the country’s finances.”
“We want our workers’ welfare guaranteed. Even though these bodies are separate, there should be equal benefits for them, and sadly the benefits are not the same,” explained Omar.
He said that under the EPF formula, the future of these workers is not guaranteed after they reach the retirement age of 58 unlike other government employees.
Instead of handing over a lump sum of money, a pension-based model would be more conducive and realistic as they would then be able to get a steady income every month, and would be able to use their money wisely.
“Getting RM300,000 won’t be worth anything in the year 2020. Even now, everything is so expensive, people end up spending everything they have instead of saving,” he added.
According to Omar, Cuepacs has also 10 more issues which it will be taking up with the prime minister.
Among these is a call to reduce the housing loan interest for civil servants from four per cent to one per cent.
“We are like barking dogs. We will bark until they hear us.”
The barking has apparently received the attention of Datuk Seri Najib Razak, as Omar has stated that he has personally met with the prime minister regarding the matter and that he is aware of the situation.
He also expressed confidence in Najib‘s administration, saying that the 60,000 affected workers will always remain loyal to the ruling government.
Posted by CUEPACS at 17:30