PUTRAJAYA wants to reduce its burgeoning pension bill by studying new mechanisms to achieve this, Prime Minister Dr Mahathir Mohamad told the Dewan Rakyat today.

He said whatever decision the government makes, it will not leave civil service retirees at the losing end.

He added civil service employment benefits are protected by the constitution, the Pension Act 1980 and the Statutory and Local Authorities Pensions Act 1980.

“Civil servants, who has legitimately served the government and have been given pension status, will continue to receive the benefits and facilities under the pension scheme.”

However, he said the government is facing challenges footing the growing pension bill.

The expenditure for pension benefits jumped from RM5.86 billion in 2006 to RM23.87 billion last year.

He said this in response to a question by Ismail Mohamed Said (BN-Kuala Krau) on the latest status of the contract scheme that is expected to replace the permanent and pension schemes for the civil service.

He added the tax collection is insufficient to cover the rising cost of pension bills, although the government is concerned with the welfare of pensioners.

The retirement age has also resulted in fewer vacancies available.

“That is why we have to find a way that will alleviate the burden of the government.

“We hope the jobless can take up jobs in the private sector and through entrepreneurship.”

He said the government will facilitate by providing skills training to those who are looking for job opportunities in the private sector.

He said this in response to a supplementary question by Ismail if the government intends to absorb the 50,000 contract workers and what it intends to do to keep the unemployment rate in check, especially among the Malays who form the bulk of the civil service. – October 22, 2019.