Politicians' pensions also cut if scheme abolished, says PM

KUALA LUMPUR: Abolishing the pension scheme for public servants will apply to politicians as well, says Prime Minister Datuk Seri Anwar Ibrahim.

“If we (implement this), all new hires will be affected, including politicians.

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“When people ask why those holding mentri besar or prime minister titles previously can still receive pension, this is based on the Federal Constitution.

"We can study it but it cannot be (taken away) retrospectively," he told a press conference here on Friday (Jan 26).

Anwar said in principle, it was agreed that politicians would also be affected in the abolishment of the pension scheme once the study of the proposal and approval were obtained at Cabinet level.

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Elaborating further, Anwar said any government in the world including Malaysia would not stand against the current economic situation and required changes to be made in the country’s administration.

“We must hear the proposal presented, debate it first, review the recommendations on what should be fine-tuned (about the pension system) then we can reach a decision,” he said.

On Wednesday (Jan 24), Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the government would have to spend some RM120bil to cover pension payments by 2040 if a new salary scheme for public sector hires is not introduced.

Ahmad Zahid said the government will introduce a new civil service hiring policy, which will include a new pension scheme.