Thursday, November 19, 2009

Pensioners want PM to settle formula

BUTTERWORTH: A group of more than 60 pensioners from Penang have urged Datuk Seri Najib Razak to intervene in their long-standing request for a revised formula to calculate pensions based on years of service.

The group's coordinator, S. Arumugam, said they hoped the prime minister would look into the plight of more than 210,000 civil servants nationwide who would benefit if the formula was implemented.
He said the pensioners were upset with a statement by Public Service Department post-service division director Datuk Yeow Chin Kiong's recently that the government could not afford higher pensions as it would burden the taxpayers.

"We are not asking for something extra. We are only asking the government to implement what it had agreed to and approved 14 years ago.

"In order to meet the increase in cost of pension and to alleviate the burden on the country's economy, the Pension Trust Fund was established in 1991, with an annual contribution of RM500 million for the next 10 years to be invested effectively.

" Therefore, he said it was illogical to say the government could not afford to pay more to the pensioners.

At present, civil servants with more than 30 years of service receive full pension, half of their last drawn salary. They are expected to receive a higher pension if it is calculated based on years of service.

NST Online

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