Findings of PSD study on raising pension payments for B40 group to be presented to PM

KUALA LUMPUR: A study to raise pension payments for those below the poverty line, conducted by the Public Service Department (PSD), has been completed and the findings will soon be presented to the Prime Minister.

Minister in the Prime Minister's Department Datuk Dr Abdul Latiff Ahmad (pic) said the lowest pension paid to a former civil servant was RM1,000, revised in 2018 from RM720 previously.

"Those who are earning less than the poverty line income of RM2,208 will be forced to go on working to (afford) necessities.

"This is something we are thinking about.

"PSD has done a study and it will be presented to the Prime Minister before a Cabinet memorandum is crafted to look at how this group of people will be able to live comfortably when they receive their pension," he told Kasthuri Patto (PH-Batu Kawan) during Ministers' Question Time in Parliament.

Kasthuri had asked the government to reveal its action plan to help pensioners, especially those whose income is below the poverty line.

Pressed to explain why there are senior citizens and members of B40 groups still receiving less than RM1,000 in pension payments, Abdul Latiff said a civil servant will receive a pension payment upon retirement and their widow, or widower, or children who qualify will receive it if the pensioner passes away.

"However, there is a limit to that. If it (payment) goes on for more than 15 years (after the pensioner's death), the payment will be reduced in stages.

"These (those receiving low payment) could be isolated cases. However, we will look into it. Most importantly, those who were part of the civil service will receive the best treatment. And the government even extends it to their dependents. Not many countries in the world do this," he said.

Abdul Latiff said despite the Covid-19 pandemic, civil service pensioners had enjoyed an increase of 2% to their pension payments annually since Jan 1, 2013.

"So, if you want to increase the rate above 2%, there needs to be a full study conducted following the pandemic," he said.

Asked about pensions for Armed Forces veterans, Abdul Latiff said improvements to the current scheme had been made.

"And all of their medical bills will be paid by the government. So there is no issue that they cannot afford to pay their medical bills.

"If it is still not enough, the Armed Forces Welfare Department will provide enough allocation to ensure that veterans will receive the necessary attention," he added.