MTUC: Pension scheme not practical
The proposal to convert the Employees Provident Fund (EPF) scheme to a monthly pension scheme for private sector employees is not viable as individual savings are too small.
Malaysian Trades Union Congress (MTUC) secretary-general G. Rajasegaran said that the majority of the seven million private sector employees had saved less than RM50,000 each in the EPF upon retirement.
“Assuming the retiree lives for the next 20 years and if his savings are given to him in monthly instalments, he would receive about RM214 a month as pension,” he told Bernama yesterday.
He added that this amount was definitely not enough for the retiree to live on.
Rajasegaran was commenting on a statement by Human Resources Minister Datuk Dr S. Subramaniam that the Cabinet had given the green light to study the possibility of converting the EPF scheme to a pension scheme for private sector employees.
Public sector employees are already enjoying a pension scheme, including free medical treatment at government hospitals for life.
Rajasegaran said the proposal was nothing new, as this had been discussed by the Congress and EPF board more than 15 years ago and no viable solution had been found.
The Malaysian Employers Federation suggested that to make it viable, the Government should give the employees an option either to withdraw their savings in a lump sum or on a monthly instalment basis.
Federation executive director Shamsuddin Bardan said savings in the EPF belonged to the employees and they had a right to do what they wanted with the money, adding that the Government cannot decide for them - Agencies.
Malaysian Trades Union Congress (MTUC) secretary-general G. Rajasegaran said that the majority of the seven million private sector employees had saved less than RM50,000 each in the EPF upon retirement.
“Assuming the retiree lives for the next 20 years and if his savings are given to him in monthly instalments, he would receive about RM214 a month as pension,” he told Bernama yesterday.
He added that this amount was definitely not enough for the retiree to live on.
Rajasegaran was commenting on a statement by Human Resources Minister Datuk Dr S. Subramaniam that the Cabinet had given the green light to study the possibility of converting the EPF scheme to a pension scheme for private sector employees.
Public sector employees are already enjoying a pension scheme, including free medical treatment at government hospitals for life.
Rajasegaran said the proposal was nothing new, as this had been discussed by the Congress and EPF board more than 15 years ago and no viable solution had been found.
The Malaysian Employers Federation suggested that to make it viable, the Government should give the employees an option either to withdraw their savings in a lump sum or on a monthly instalment basis.
Federation executive director Shamsuddin Bardan said savings in the EPF belonged to the employees and they had a right to do what they wanted with the money, adding that the Government cannot decide for them - Agencies.
