‘Pensions are a thing of the past, abolish them’ - KJ

KUALA LUMPUR - Former Rembau MP Khairy Jamaluddin has agreed with the proposal to cancel parliamentary pensions as well as suggesting to abolish civil servants' pensions to help balance the nation's finances.

In a recent podcast interview, Khairy said he was ready to switch his own government pension to the Employees Provident Fund (EPF) retirement scheme.

"I think pensions are a thing of the past. During my time in the Cabinet, I said there are three things we can do to safeguard the nation's finances.

"First, reintroduce the Goods and Services Tax (GST). Second, rationalise subsidies. The second one, the government says it wants to do it, but we don't know the mechanism.

"We are still waiting and watching on the GST. The third is to stop pensions. But this is for civil servants who are already in service; the pension scheme continues.

"But all new civil servants, after a set date, for example, January 1, 2024, will all be enrolled in the EPF," he said.

Khairy stressed that the abolition should be done as soon as possible because any delay will continue to affect the nation's finances.

According to him, the government may bear up to RM50 billion for civil servants' pensions in the next 10 years if it is not abolished. - AWANI