Cuepacs suggests flexible retirement payouts under SSPA
KUALA LUMPUR: The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) has proposed that permanent appointees under the new Public Service Remuneration System (SSPA) be given monthly basis or lump sum options for their retirement payments, subject to conditions and eligibility.
Its president, Datuk Dr Adnan Mat, said this was one of three proposals submitted by Cuepacs in response to the Public Service Department's plan to retain the monthly payment method under the SSPA, which will replace the current pension scheme.
Cuepacs also proposed a hybrid scheme allowing partial lump sum withdrawals with the balance paid monthly.
The third proposal calls for ensuring government contribution rates are sufficient to cover retirees' basic needs.
'Cuepacs welcomes the government's approach, as it demonstrates concern for the welfare of civil servants after retirement, even if they are no longer under the traditional pension scheme.
'We also acknowledge that some civil servants prefer to receive their retirement benefits in a lump sum, similar to the Employees Provident Fund scheme,' he said in a statement today.
Yesterday, Public Service director-general Tan Sri Wan Ahmad Dahlan Abdul Aziz said the proposal to maintain monthly payments for permanent appointees under the SSPA can help protect retirees from falling victim to scams, while ensuring their retirement savings are managed more efficiently.
Adnan added that monthly payments offer better financial protection, reduce the risk of overspending and provide stability amid economic uncertainty and rising living costs.
He said that while the current pension scheme remains the best model to safeguard retirees' welfare, Cuepacs understands that fiscal constraints and the government's financial position make it difficult to sustain the traditional pension scheme for new hires.
As such, he stressed that any amendment introduced must be based on the principle of 'no lesser benefits' compared to the existing pension scheme.
'Cuepacs will continue to actively engage with the government to ensure that the implementation of any new scheme takes into account the views of civil servants and provides long-term benefits for all parties,' he added.
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