Proposed 'pension-like' payments under SSPA can help protect retirees from scams
KUALA LUMPUR: The proposal to introduce 'pension-like' payments for permanent appointees under the new Public Service Remuneration System (SSPA) can help protect retirees from falling victim to scams, said Tan Sri Wan Ahmad Dahlan Abdul Aziz.
The Public Service director-general (KPPA) said the move would also ensure retirees' savings are managed more efficiently.
'Based on simulations conducted with the Finance Ministry (MOF) and the Employees Provident Fund (EPF), those who enter service at Grade 1 at the age of 20 and retire at 60, with 40 years of service, would have accumulated savings of RM1.36 million.
'I am currently drafting a proposal (for those retiring under the new scheme) to also receive monthly payments similar to pensioners. Both EPF and MOF have agreed to this.
'For instance, if the retiree requires around RM25,000 a year, the balance of the savings will be reinvested in EPF, allowing them to earn dividends at year-end. I believe this is a very attractive model,' he told a press conference after the 'Bicara Figura: Menelusuri Aspirasi Memaknai Reformasi' at the RISDA headquarters here today.
Wan Ahmad Dahlan said the finalised proposal would be presented to Prime Minister Datuk Seri Anwar Ibrahim for consideration this October.
He said the study on the implementation of the new concept is in its final stage before being submitted to the Cabinet.
'I have already presented the initial concept to the prime minister, and in October, I will present the final version.
'The proposal still needs to go through the Cabinet, Parliament and another necessary process, as we are shifting from the current permanent and pensionable appointment system, which is enshrined in the Constitution and relevant laws, to a new system,' he said.
Prior to this, Anwar said the government is reviewing a new method for permanent appointments and contributions and conducting in-depth studies to determine the best strategy for the government and newly appointed civil servants.
The Bicara Figura programme is a strategic initiative organised by RISDA to serve as a high-impact platform for inspiration and knowledge-sharing by prominent figures in the public sector and organisational development.
The programme aims to promote values of leadership, accountability, innovation and a culture of excellence in facing current challenges in management and service delivery.
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