Cuepacs unhappy over CPS

The Star

By SARBAN SINGH

SEREMBAN: Cuepacs has expressed disappointment with the Public Service Department for not considering its views on the Contributory Pension Scheme (CPS) for new civil servants.

Its president Omar Osman said the PSD had yet to revert to the congress on what he described as “flaws” in the new scheme.

“Now we are being told that an announcement on the new scheme will be made soon.

“All we had asked for was an explanation from the PSD on how the new scheme was superior to the existing one,” he said, adding that new employees should not be forced to accept the CPS.

Omar said Cuepacs officials could not comprehend how the CPS was better than the existing one.

“That is what the PSD has been saying all this while. All we are asking is for them to justify it,” he said.

A government official, when contacted in Putrajaya, said all matters pertaining to the implementation of the CPS had been ironed out and an announcement could be expected “anytime.”

“Everything has been finalised. Just wait for the Prime Minister (Datuk Seri Abdullah Ahmad Badawi) to make the announcement,” he said.

Cuepacs said that since the CPS was in no way superior to the existing scheme, the congress was still against its implementation.

“If the Government goes ahead with its implementation, it would only be doing injustice to new employees,” said Omar.

He said the recent revision of salaries for government servants would have little meaning to new employees.

The Government, which has been studying the scheme since the mid-1990s, has little choice but to implement the CPS due to the burgeoning pension bill, which is expected to hit RM6bil next year. The total pension bill amounted to less than RM2bil some 15 years ago.

With the CPS, to be managed by the Pensions Trust Fund, new recruits have to contribute 11% of their salaries to the fund monthly, just like those in the private sector. The Government will pay 12%.