KUALA LUMPUR: The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) proposed that the government create a new policy to extend the retirement age of civil servants to 62.
Its president Datuk Azih Muda said the basic retirement age from 60 years must be extended to 62 years, in preparation for the country to become a developed nation which is competitive globally and on par with other developed countries.
“When heading towards a developed country, we need a policy that is acceptable worldwide.
“Professionals such as lecturers, judges, engineers and consultants have specific expertise, the country will lose out if it lets go of these expertise,” he said in an interview on BernamaTV’s ‘Ruang Bicara’ programme, aired live yesterday.
He said under the new policy, civil servants could choose to retire at the age of 62, or ahead of it without coercion.
Azih said before this there were civil servants whose services were still needed even though they had retired and were appointed on contract.
“Some who have retired were appointed on contract and were paid twice, a pension and a contract salary. If this policy is implemented it will benefit the government,” he said.
He said the amount of pension paid to former civil servants today has reached almost RM20 billion and Cuepacs’ estimate of the total number of civil servants who would retire every year, is between 21,000 to 25,000.
If the pension age is extended, the government need not pay such a high amount on pensions and salaries, he said.
He also said there were 1.6 million civil servants in the country who do not have savings because 60 per cent of their income is used to pay bank loans, for their children’s education and other expenses. – Bernama