Current govt pension scheme a ticking time bomb, says KJ

  • Reforms must be made to the government’s pension system urgently or things will get worse in the future for Putrajaya’s finances, says former minister Khairy Jamaluddin.
  • Khairy said Putrajaya forked out about MYR30bn to pay pensioners in 2022, making up nearly 10% of the government’s expenditures in its annual budget.
  • He also pointed out that former prime minister Ismail Sabri Yaakob had said that pension payments are expected to reach an estimated MYR46.6bn in 2030.
  • Khairy reiterated his proposal for all future recruits into the civil service to contribute to EPF rather than being paid pensions.
  • On Wednesday, the Congress of Unions of Employees in the Public and Civil Services rejected proposals to do away with or reduce the pension benefits of civil servants, describing such suggestions as “absurd and unwarranted”

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