Cuepacs backs monthly payment plan under new SSPA pension scheme
Cuepacs backs monthly payment plan under new SSPA pension scheme
KUALA LUMPUR: The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) has expressed support for the proposed monthly payment mechanism under the new Public Service Remuneration System (SSPA), a contributory pension scheme.
Cuepacs president Datuk Dr Adnan Mat said the Public Services Department's (PSD) proposal for a monthly payment mechanism, which mirrors the existing pension structure, would benefit new permanent civil servants who would no longer be covered under the conventional pension scheme.
He said fiscal constraints had made it difficult for the government to sustain the current pension scheme for future appointments, although the union still regarded it as the best model for protecting retirees' welfare.
"This approach reflects the government's ongoing concern for the welfare of public servants after retirement, offering long-term financial protection amid rising living costs and uncertain economic conditions," he said in a statement today.
Adnan said that while some civil servants might prefer a one-off lump sum withdrawal similar to the Employees Provident Fund (EPF) system, a monthly payout provided a more structured and secure method of managing retirement savings.
"This would also help reduce the risk of overspending or depleting retirement funds too quickly," he added.
To ensure fairness and sustained protection for future retirees, Adnan said the union proposed that civil servants be given the flexibility to choose the form of payout most suitable to their needs.
"We also suggest that a hybrid model, combining both lump sum and monthly payments, be considered.
"The government's contribution rate under the new scheme should also be sufficient to ensure that retirees can meet their basic needs, with benefits comparable to those of the current pension system."
He said Cuepacs would continue to participate actively in discussions with the government to ensure that any new retirement scheme reflects the voices of civil servants and delivers long-term benefits to all stakeholders.
Yesterday, Public Services Department director-general Tan Sri Wan Ahmad Dahlan Abdul Aziz said the new Public Service Remuneration System (SSPA), which will replace the current pension scheme, is expected to retain the existing monthly payment method.
Under the system, civil servants who reach the retirement age will receive monthly payments, similar to the existing pension method, rather than a lump sum withdrawal.
Wan Ahmad Dahlan said the proposal had also been agreed upon by the Finance Ministry and the EPF.
The Cabinet had previously agreed that new permanent positions in the public service would no longer be pensionable, with new recruits to be appointed on a contract basis starting from Feb 1.
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