The proposal by Cuepacs president Adnan Mat follows a suggestion by another association for civil servants, Persatuan Pesara Kerajaan dan Swasta (Pejasama), that pensioners under the public service remuneration system (SSPA) be given the option of receiving their pension either as monthly payments or a lump sum upon retirement.

Its president, Azih Muda, said such flexibility was necessary as some retirees might prefer access to a large sum of money to make significant purchases after completing their service, in response to the proposed reforms to the SSPA, which is expected to retain the monthly pension payment model.

Adnan agreed with Pejasama’s proposal.

“These options would help preserve long-term financial security while offering flexibility based on the needs and preferences of civil servants,” he said in a statement.

Yesterday, public service director-general Wan Ahmad Dahlan Abdul Aziz described the proposal as a proactive move, citing cases of pensioners falling victim to scams as a key concern, along with the need to manage retirement savings more efficiently.

Today, Adnan said Cuepacs supported the public services department’s proposal to maintain monthly payments for civil servants under the SSPA.

He described the move as a positive step towards ensuring income stability after retirement, despite civil servants no longer being part of the conventional pension model.

“Any new mechanism must be based on the principle of ‘no lesser benefits’ compared to the current pension scheme to ensure retirees’ welfare remains protected.”

While reaffirming that the existing pension scheme remains the best system to guarantee long-term welfare, Cuepacs acknowledged that the government’s fiscal constraints make it difficult to sustain the traditional model for future appointments.

Cuepacs also noted that some civil servants may prefer a lump-sum payment similar to the EPF system, but argued that monthly disbursements are more structured, secure and reduce the risk of financial mismanagement.