SHAH ALAM: A pension-like scheme for private sector employees who are over 60 years of age is being mulled, says Human Resources Minister Datuk Seri M. Saravanan.
With a growing elderly population, the proposal is seen as crucial to protecting those over 60, as this is when chronic illnesses strike, and most have depleted their savings.
“The nation will soon have a large population of workers who are either still working or retired in their senior years, especially those above the age of 60, by the year 2030.
“We realise that while civil servants have a pension scheme, those in the private sector do not have such benefits after the age of 60.
“Once they retire, they do not have income, benefits of any kind, and no savings as they would have withdrawn their Employee Provident Fund (EPF) savings upon turning 55 years old.
“Yet, they are faced with the challenge of covering costs of living.
“I asked Socso to study the feasibility of converting Socso contributions of private sector employees who have turned 60 and above into a pension-like scheme,” Saravanan said after addressing a trade unionist gathering at the Shah Alam Convention Centre yesterday.
He said the nation was burdened with caring for seniors aged above 60 with no financial safety net of any kind. Thus, such a proposal would assist the government.
Saravanan said that it would take about six months for the study to be completed before it could be submitted to the government.
“I am doing a very in-depth study for the government, but it has to be done.
“Private sector employees have contributed for more than 30 years to Socso ... throughout their working lives.
“It is only after 60 years of age that diseases will come and their savings will be depleted after paying off debts and children’s needs.
“I am looking at the possibility of converting the Socso scheme to a pension-like one for those over 60,” he said.
Although acknowledging that the proposal may not be implemented during his tenure, Saravanan said he hoped the ministry would continue to take up the issue.
During the event, the minister presented appreciation awards to unionists to honour their efforts in bettering workers’ welfare.
