IPOH, Nov 20 — The proposals to extend the retirement age for civil servants to 65 will primarily apply only to those under the permanent appointment with contribution scheme, if approved, said Datuk Adnan Mat.
However, the Congress of Union of Employees in the Public and Civil Services (Cuepacs) president said no decision has been made on the proposals so far, as the matter is still under government review.
“Moving forward, the public service would operate under two schemes — the permanent pensionable scheme and the permanent appointment with contribution scheme.
“The proposals to raise the retirement age were largely related to the permanent appointment with contribution scheme, which had also been highlighted by the Employees Provident Fund (EPF), recommending that the retirement age be extended to 65,” he told a press conference.
Adnan was speaking when asked about the latest update on the proposal to increase the civil servant retirement age to 65.
He acknowledged that the permanent appointment with contribution scheme might require adjustments to ensure contributors accumulate sufficient retirement savings.
“That is why EPF proposed extending it to 65. There needs to be a comprehensive study toward this direction. This proposal, we leave entirely to the government,” he said.
Adnan pointed out that final savings under this contribution-based scheme are crucial in determining whether contributors will have enough funds or if they would need to opt for a hybrid withdrawal system.
“The hybrid system is where a part of the savings is withdrawn and another portion is retained to be paid in a manner similar to a pension,” he explained.
He added that both the scheme structure and retirement benefits will be finalised together, as they form part of a single package aimed at safeguarding the future of civil servants under the contribution-based system.
“Cuepacs is not making any comment yet on that scheme because we are still studying the projected savings employees will have at the end of their service.
“For now, nothing has been finalised — it is all still under review,” he said.
Adnan also said Cuepacs continues to stand by its position to maintain the retirement age at 60.
On Tuesday, Public Service Department (PSD) director-general Tan Sri Wan Ahmad Dahlan Abdul Aziz said the proposal to raise the retirement age to 65 is under stakeholder consultation, which includes Cuepacs and retirees’ associations.
Wan Ahmad said Cuepacs expressed both support and opposition on the matter, and a decision to raise the retirement age can only be made after a thorough review.
In May, Minister in the Prime Minister’s Department (Law and Institutional Reforms) Datuk Seri Azalina Othman Said proposed raising the retirement age from 60 to 65, noting that individuals at this age remain healthy and capable of contributing productively.
Subsequently, Prime Minister Datuk Seri Anwar Ibrahim, during the 13MP presentation in the Dewan Rakyat on July 31, said the mandatory retirement age would be reviewed in line with Malaysia’s ageing population.
Anwar said the review will consider financial implications and employment opportunities before any decision is finalised.
