On Wednesday, deputy prime minister Ahmad Zahid Hamidi said new civil servants would no longer get pensions but would contribute to EPF and the Social Security Organisation (Socso).

At present, civil servants are allowed to choose between the pension scheme and contributions to EPF.

In a statement today, Cuepacs, the umbrella body for civil service unions, said that most civil servants prefer the pension scheme as it is seen as the “best option” for them.

“Due to the current low salaries in the civil service, the EPF contribution scheme is seen as inadequate in helping civil servants build a substantial retirement fund,” said Cuepacs president Adnan Mat.

“The government must ensure that civil servants’ salaries can provide them a decent standard of living and contribute to their retirement savings.

“If financial constraints are hindering the government from continuing the civil servants’ pension scheme, it should also reconsider providing pensions to politicians.”

Adnan said this would be “reasonable” considering that most MPs, state legislative assembly members and those appointed to executive positions such as exco members, ministers and deputy ministers only serve the government for five years.

He added that not only do these politicians receive lucrative allowances and allocations during their service, they also enjoy various privileges compared to civil servants who, on average, serve for more than 30 years.

When announcing the new policy on Wednesday, Zahid said the government will contribute to EPF for new civil servants, similar to how private sector employers do for their workers.

Zahid said this measure would alleviate the government’s financial burden, by reducing pension payments.

He said the new policy will be implemented by this year, with the public services department to announce the exact date.